E2W stocks Ather, Ola Electric rally up to 38% in 1 month; here's why

Ather Energy surged 7 per cent to a record high of ₹458.60, while Ola Electric jumped 5 per cent to a five-month high of ₹57.50 on the BSE

Ather Energy, Ola Electric Mobility share price today

Shares of electric two and three-wheeler companies are in the limelight, with Ather Energy and Ola Electric Mobility rallying by up to 7 per cent on the BSE in Friday's intra-day trade on expectations of a healthy business outlook. 

 

Among the individual stocks, Ather Energy stock hit a record high of ₹458.60, soaring 7 per cent in intra-day trade. Shares of Ola Electric hit a five-month high of ₹57.50, gaining 5 per cent on the BSE. 

 

In the past month, Ola Electric rallied 38 per cent and Ather Energy surged 33 per cent. In comparison, the BSE Sensex declined 1.4 per cent, while, BSE Auto index gained 5 per cent during the same period. 

 

 

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Why are EV 2W stocks surging?

The two-wheeler industry is poised for sustained growth, driven by a positive microeconomic and macroeconomic environment, strong rural demand, premiumisation, new model launches, shrinking replacement cycles, and ongoing financing support. Additionally, continued R&D investments and technological advancements by original equipment manufacturers (OEMs) will further bolster industry growth.

 

The rapidly expanding electric vehicle (EV) market, propelled by legacy players increasing their EV portfolios and new entrants expanding capacity, is accelerating growth. The entry of established brands into the EV market is expected to provide significant momentum. The expansion of distribution in the E2W market is also expected to fuel the sector’s growth, according to Ather Energy.

 

As EV prices continue to decline, the Government has strategically shifted from consumer subsidies to more structurally efficient Production Linked Incentives (PLIs) across Automobiles, Components, and Advanced Cell Chemistry (ACC). This move reflects a clear commitment to building a self-reliant, globally competitive EV manufacturing ecosystem, underpinned by confidence in rising consumer demand and a long-term vision to localise the entire value chain, Ola Electric said in its FY25 annual report.  ALSO READ: IPO-bound NephroPlus expands ops in Philippines, acquires 5 more clinics 

Meanwhile, post-pandemic, electrification has surged due to increased awareness, government support, and new EV options from both established OEMs and new-age companies like Ather. Shorter replacement cycles of 7-8 years are also boosting sales. Additionally, branded accessories from both traditional and new EV players contribute significantly to OEM revenue. 

 

With recovering urban demand, greater financing access, premiumisation trends and continued policy tailwinds, the E2W sector is poised for accelerated growth, Ola Electric said.

 

In an optimistic scenario, driven by increased EV launches, strong government support, rapid infrastructure development, reduced battery prices, and a faster consumer shift toward electrification, industry sales could grow at ~8 per cent compounded annual growth rate (CAGR), reaching 30-31 million units by FY31. In this scenario, EV penetration may rise to ~40 per cent, compared to the ~35 per cent projected in the base case, Ather Energy said in its FY25 annual report.

 

Scooters are expected to lead the electrification in 2W. E2W penetration in scooters was ~16 per cent in FY25 and is expected to be as high as 70 per cent in FY31. EV penetration in motorcycles is projected to be 10 per cent by FY31, the company said.

  ALSO READ: IPO-bound NephroPlus expands ops in Philippines, acquires 5 more clinics