Bengaluru: Bhavish Aggarwal’s Ola Electric hasn’t been able to shrug off the persistent negative publicity associated with its scooters yet. As per its Q2 results, the company reported a sharp 61% year-on-year decline in its e-scooter sales, losing the number one position in the market. The company’s consolidated revenues have fallen 46% from ₹1,214 crore in Q2 FY25 to ₹660 crore this time, with losses widening by 23.3% in the same period. The company has still
This comes at a time when the electric scooter market is growing rapidly, with sales increasing 30% year on year, especially as competitors like Bajaj Electricials, TVS and Ather have relegated Ola to the fourth position in market share.
Over the last two months, Bhavish Agarwal’s Ola had shown signs of resurgence, first with its government nod for its indigenous ferrite motor in September and its launch of its new commercial battery storage solution Ola Shakti last month.
“For a firm built on a high-growth narrative and rapid market capture, this kind of revenue contraction signals serious headwinds — be it in supply chain, pricing, channel conflict or saturation of the target market,” Harshal Dasani, Business Head at INVAsset PMS said.
Ola Electric’s shares have fallen almost 10% in one month, with the stock declining almost 36% on a year to date (YTD) basis.
Trouble seems to be mounting for Bhavish Agarwal, as he now has to work towards resurrecting his brand’s reputation, especially since this downward trend has continued for quite some time now. His new launches may be an ace up his sleeves, but how will that help him boost profitability? That’s a question on everyone’s mind.
