Ola Electric, founded by Bhavish Aggarwal, quickly rose to become one of India’s most talked about electric vehicle (EV) companies. In 2021, the company disrupted the market with the launch of its S1 electric scooter, coupled with an unexpected direct to consumer strategy that allowed buyers to order their vehicles online, bypassing traditional dealership networks altogether. The bold move paid off within just three years, Ola Electric captured nearly half of India’s electric scooter market.
Their success story continued to gain momentum. In 2024, Ola Electric went public with an initial public offering (IPO) that became the largest of the year in India. The IPO was a resounding success, attracting bids worth more than $1.8 billion, far exceeding the amount on offer. At this point, the future seemed exceptionally bright for the company.
However, the road ahead was not without obstacles.
As Ola Electric expanded, competition from established players like TVS Motors and Bajaj Auto intensified. These traditional manufacturers began offering competitive prices, expanded their dealer networks, and launched attractive offers that started to lure away customers who once considered Ola their first choice.
Adding to the pressure, Ola Electric began facing issues with customer satisfaction. Delivery delays and service problems plagued their operations, leading to a wave of unhappy customers. In a particularly dramatic incident, one disgruntled customer even set fire to an Ola showroom, highlighting the growing frustration among buyers. These service issues have started to dent Ola Electric’s hard-earned reputation.
Regulatory troubles have further compounded the company’s woes. In early 2025, India’s Securities and Exchange Board (SEBI) criticized Ola Electric for failing to disclose key information to investors before it appeared on social media. Such lapses raise serious concerns about transparency and governance, making future investors wary.
Financially, the situation is equally concerning. Ola Electric reported a loss of ₹347 crore in the first quarter of 2024 a deterioration compared to the previous year. Part of this is due to aggressive price cuts aimed at boosting sales, following a reduction in government subsidies for electric vehicles.
In response to mounting challenges, Ola Electric has made some tough strategic decisions. The company has suspended its plans to launch an electric car, choosing instead to refocus on its core scooter and bike business. Cost-cutting measures are also underway, including the layoff of around 500 employees. Additionally, Ola is working on producing its own batteries in-house to reduce manufacturing costs and increase control over its supply chain.
Ola Electric’s meteoric rise in the EV market is undeniably impressive. Yet, it now faces significant challenges that threaten to slow its momentum. Improving customer service, addressing regulatory concerns, and achieving financial stability in a fiercely competitive landscape will be crucial. The next few years will determine whether Ola Electric can overcome these hurdles and secure its place as a leader in India’s rapidly evolving electric vehicle sector.
