Ola Electric’s share of India’s electric two-wheeler market has plunged to under 6% as of January 2026, reflecting a sharp reversal of fortunes for a company once seen as the front-runner in the country’s EV transition. Industry registration data and market trends point to rapidly changing competitive dynamics and shifting buyer preferences.
Steep decline in market share
Registration figures show Ola Electric’s market share fell to about 5.8% in January 2026, down from nearly 25% a year earlier. Monthly registrations dropped to roughly 5,500 units in January 2026, compared with peaks above 30,000 units during the company’s earlier high-demand phase. Over the past year, Ola’s average share settled in the mid-teens before the most recent slide.
Operational and product challenges
A combination of product-quality concerns and after-sales service issues has eroded buyer confidence. Customers and dealers have reported servicing delays, persistent software glitches and inconsistent support responses. Although Ola expanded its service network and introduced process changes to address complaints, the cumulative impact on brand perception has proved difficult to reverse quickly.
Safety and buyer sentiment
Safety-related discussions around electric scooters have further dented consumer trust. In a market where many buyers are first-time EV purchasers who rely heavily on peer reviews and dealer reassurance, such negative sentiment can materially influence purchase decisions.
Short-lived recovery and renewed slide
The company achieved a brief resurgence in April 2025, when market share climbed above 21%, but the recovery did not sustain. From mid-2025 onwards, registrations declined as competitors intensified product launches and expanded distribution, culminating in the low market share recorded in January 2026.
Competitors consolidate gains
Several rivals have capitalised on Ola’s weakening position. Ather Energy posted strong year-on-year growth, leveraging product reliability, premium positioning and a widening charging and service footprint to attract urban and semi-urban buyers.
Incumbent two‑wheeler manufacturers such as TVS Motor and Bajaj Auto also strengthened their EV offerings. Their established dealer networks, manufacturing scale and brand trust helped deliver steady sales and allowed them to capture larger portions of the E2W market.
Investor response and market outlook
The market share decline has pressured Ola Electric’s stock, with the share price trending lower in recent months as investors await signs of operational stabilisation and renewed consumer confidence. The broader E2W market, however, continues to expand as infrastructure, product variety and consumer awareness improve.
Ola’s prospects in 2026 will hinge on consistently improving product quality, strengthening after-sales service and rebuilding trust among buyers. How effectively the company addresses these operational and perception issues will determine whether the current slump is a temporary setback or a longer-term realignment in India’s electric two‑wheeler sector.
