Ola Electric, once a promising player in the electric scooter market, is facing a challenging period as its revenue slips below its competitor Ather Energy. The company’s recent financial woes are attributed to a series of controversies that have impacted its operations and revenue generation. In the fiscal year 2025, Ola Electric reported a significant net loss of ₹2,276 crore, with a 9.9% decline in revenue from operations to ₹4,514 crore. The fourth quarter of FY25 saw a drastic 41.5% drop in revenue to ₹611 crore, marking a concerning trend for the company.
Despite an increase in overall sales in FY25, Ola Electric’s market performance has been faltering. The brand delivered 3,59,221 new electric scooters, showing growth compared to the previous fiscal year. However, the company’s market share has been steadily declining, dropping to 20% in the latest data. In contrast, Ather Energy, which recently went public, outperformed Ola Electric with revenue of ₹676.1 crore in the same quarter, highlighting Ola’s struggle to maintain its competitive edge in the market.
Looking ahead to FY26, Ola Electric aims to revitalize its position in the industry through strategic initiatives such as Project Vistaar and Project Lakshya. These projects are designed to enhance revenue streams and operational efficiency, crucial for the company’s turnaround. Ola Electric has focused on streamlining its vehicle registration process to expedite deliveries and improve customer satisfaction. Additionally, the introduction of new models like the Gen 3 S1 scooters and the Roadster X electric motorcycles signals the company’s commitment to innovation and product diversification.
Furthermore, Ola Electric has expanded its dealership network to over 4,000 locations nationwide, aiming to increase its market presence and customer accessibility. The company’s proprietary Bharat Cell production, nearing commercial rollout in FY26, is expected to boost gross margins by 35% in the second quarter. These strategic moves demonstrate Ola Electric’s determination to overcome its current challenges and regain its foothold in the competitive electric vehicle market.
Despite facing setbacks in the initial months of FY26, Ola Electric remains optimistic about its future prospects. The company’s focus on product innovation, operational efficiency, and market expansion reflects a proactive approach to navigating the evolving landscape of electric mobility. As the industry continues to grow and evolve, Ola Electric’s ability to adapt and capitalize on emerging opportunities will be critical to its long-term success and sustainability in the market.
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