Bajaj Auto topples Ola Electric as market leader of electric two-wheelers in March

Bajaj Auto has regained market lead in the electric two-wheeler (E2W) segment with a sale of 34,868 units in March. Bhavish Aggarwal-led Ola Electric has fallen to the third place, after TVS Motor, amid regulatory inquiries over discrepancies in sales data and non-compliance with trade requirement certificates.

Bajaj Auto, which makes the Chetak scooter, now has a 26.8% market share in the E2W segment, followed by TVS Motor, which sold 30,454 units during the period, gaining a market share of 23.4%.

Ola Electric sold 23,430 units in March, and its market share dropped to 18%. In February, the EV-maker had sold 25,000 units, according to a company statement. However, due to ongoing negotiations with its vehicle registration partners, data on the Vahan portal showed that the company had sold only 8,390 units in the month.

This is not the first time that Bajaj has garnered the larger piece of the E2W market. The company, in December, had overtaken Ola Electric for the first time, selling 18,276 units and capturing 24.93% of the market share.

Meanwhile, IPO-bound Ather Energy is gradually picking up market share. In March, the firm sold 15,446 units. It currently holds a market share of 12% in the segment.

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Ola Electric’s woes

Ola Electric’s loss of market leadership position coincides with rising troubles at the company as it struggles to attain profitability and generate demand for its vehicles. Recently, the firm confirmed that it has received inquiries from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways of India.

However, the company clarified on March 21 that there are no ongoing regulatory or legal proceedings, adding that the sales mismatch in February was due to a “temporary registration backlog”. In February, the company was in renegotiations with its vehicle registration partners Rosmerta Digital Services and Shimnit India.

Things took a turn for the worse in March when Rosmerta, one of the firms Ola Electric was renegotiating contracts with, filed a petition against Ola Electric Technologies—the EV arm of Ola Electric, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The firm has since settled its dues with Rosmerta.

Meanwhile, Ola Electric is infusing Rs 199 crore into its cell manufacturing arm, according to a stock exchange filing.

(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director at Ola Electric.)