Ola Electric share price up 5% as it consolidates 34% market share in Oct

Ola Electric has achieved 34 per cent market share on the back of its wide S1 portfolio of scooters and an expanding service network, even as its after-sales and pricing practices come under radar

Ola Electric Mobility share price climbed as much as 5 per cent in Tuesday's trade on the BSE and recorded an intraday high at Rs 91.85 per share.

The stock saw an upmove after the electric two-wheeler manufacturer recorded over 15,672 registrations this month (as on October 14) with an impressive market share of 34 per cent.

At around 11:03 AM, Ola Electric's shares were up 4.36 per cent at Rs 91.27 per share. In comparison, the BSE Sensex was down 0.17 per cent at 81,833.47, around the same time. The market capitalisation of the company stood at Rs 40,257.64 crore around the same time.

 

As per the company's exchange filing, Ola Electric had a market share of 34 per cent on the back of its wide portfolio of S1 scooters and a rapidly expanding service network. 

The S1 portfolio of Ola Electric consists of S1 Pro and S1 Air, priced at Rs 1,34,999 and Rs 1,07,499, respectively, while the S1 X portfolio (2 kWh, 3 kWh, and 4 kWh scooters) are priced at Rs 74,999, Rs 87,999, and Rs 101,999, respectively.

Further, the company expects the momentum to continue for the rest of the festive season leading up to Diwali, spearheading India’s transition towards electric mobility in the 2W segment.

Additionally, the company said that as a part of its Network Partner Program, Ola Electric will onboard 10,000 partners across sales and service by the end of 2025.

The company's stock has lost nearly 9 per cent in the past three trading sessions, after consumer rights regulator Central Consumer Protection Authority (CCPA) started scrutinising Ola Electric's scooters' for quality issues and after-sales service after receiving numerous complaints regarding the same from customers. READ MORE

Recently, the Automotive Research Association of India (ARAI) also asked Ola Electric to provide clarification regarding its failure to inform it about a price reduction for its S1X 2kWh model before the launch of its ‘BOSS’ sale as soon as possible. READ MORE

In case the company is found to have violated the set guidelines, Ola Electric may face legal action and potentially lose the subsidies its electric vehicles are eligible for under the PM Electric DRIVE Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.

Since its listing on August 9, 2024, Ola Electric shares have lost 4 per cent, compared to the BSE Sensex's rise of 2.8 per cent during the same period.