Ola Electric has seen its shares rise by 13.49%, reaching an intraday high of ₹25.44 on the BSE, driven by a substantial increase in escooter registrations in March.
At 13:05 IST, the stock was trading at ₹25.65, marking a 12.43% increase, with the company's market capitalization around ₹11,300 crore (approximately $1.2 billion).
In March, Ola Electric regained its position as the fifth largest player in E2W registrations, with a remarkable 139% increase to 9,496 units compared to 3,973 units in February. This growth gave the company a 5.3% share of India's E2W market.
The company reported that it surpassed 1,000 registrations per day in the last week of March, coinciding with a promotional campaign offering discounts of up to ₹50,000, making some models available for as low as ₹49,999. Cumulative registrations have now exceeded 1 million.
Despite the recent growth, Ola Electric's market share remains below its previous highs. However, this rebound suggests that recent initiatives to attract customers are beginning to yield positive results.
Ola Electric noted a 150% month-over-month increase in registrations last month. The company has enhanced its service capabilities, achieving over 80% resolution for customer complaints on the same day. Additionally, it is providing an assured buyback value of up to 60% and extending warranties up to eight years to alleviate customer concerns.
The recovery is attributed to better parts availability, quicker diagnostics, and improved operational control. The company stated, "After facing service challenges, we have made significant operational changes that have improved turnaround times and customer experiences, thereby rebuilding trust and boosting demand."
This turnaround follows a challenging year marked by criticism over inadequate after-sales service, which included reports of service centers overwhelmed with repair requests. The company also faced regulatory scrutiny and declining sales figures in the previous financial year.
In the third quarter of FY25, Ola Electric reported a 55% year-over-year drop in operating revenue to ₹470 crore, while reducing its net loss by 14% to ₹487 crore.
Revival in the E2W Market
Ola Electric's competitor, Ather Energy, also experienced a rise in share prices, trading 2.68% higher at ₹773.2, following a 19% month-over-month increase in sales to 33,621 units. The company is set to launch a more affordable scooter soon.
The overall E2W market saw a 59% increase in registrations in March, totaling 1.78 lakh units, fueled by discounts, subsidies, and new battery subscription models from manufacturers like TVS and Hero.
Additionally, the government has extended the timeline for E2W subsidies under the PM E-DRIVE scheme to July 31, 2026, providing further support to the market.
