Ola Electric’s Shocking Decline: From Market Leader to Struggler in Just Months
Ola Electric, once India’s leading EV manufacturer, is facing a steep decline due to rising competition and internal challenges. Its stock has plummeted over 60% from its August 2024 peak, reaching an all-time low on March 3, 2025. Legacy two-wheeler giants like Bajaj and TVS have eroded Ola’s early advantage, while growing customer complaints about product quality, service delays, and misleading advertising have further damaged its reputation. In February 2025, Ola registered only 8,647 scooters, a sharp drop from 34,000 a year ago.
Financial losses have surged, reaching ₹5.64 billion ($65 million) in Q4 2024. India’s consumer rights agency has launched an investigation after receiving 10,664 complaints against the company. In response, Ola is cutting 1,000 jobs across multiple departments in a bid to reduce costs. However, frequent executive exits, including the departure of the CEO and CFO within months, have disrupted the company’s strategy. While Ola recently secured an $8.5 million government subsidy under the PLI scheme, experts warn that ongoing losses could hinder investment in R&D and new technologies. With financial instability, declining consumer trust, and intense competition, Ola’s future in India’s EV market remains uncertain.
Ola Electric’s Shocking Decline: From Market Leader to Struggler in Just Months
Ola Electric was once the dominant force in India’s electric vehicle (EV) industry, attracting massive investments and outpacing legacy two-wheeler brands. However, its recent downturn reflects both declining investor confidence and internal difficulties stemming from rapid, unsustainable growth.
On March 3, 2025, Ola Electric’s stock hit a historic low, plummeting over 60% from its peak in August 2024. Experts attribute this decline to the company’s aggressive expansion in 2022, which left it vulnerable to growing competition from well-established players like Bajaj Auto, TVS Motor, and the rising startup Ather. Additionally, increasing customer complaints about Ola’s scooters have significantly impacted its sales.
“The first-mover advantage Ola once had is no longer relevant as established brands strengthen their presence in the EV space,” said D. Dhanuraj, founder-chairman of the Centre for Public Policy Research. “Brand trust and loyalty are now favoring older, more reputable manufacturers.”
From Market Leader to Struggling Contender
Despite reaching a $3 billion valuation early on and securing investment from major firms like Tiger Global and SoftBank, Ola Electric now faces significant hurdles. The company had ambitious plans to spearhead India’s EV revolution, with its massive “Future Factory” in Tamil Nadu boasting an annual production capacity of 1 million scooters as of March 2024.
In 2024, a total of 1.14 million electric two-wheelers were sold in India, with Ola accounting for 407,673 units—35% of the market share. However, the situation has taken a drastic turn. In February 2025, Ola registered only 8,647 scooters, a sharp decline from nearly 34,000 in the same month the previous year.
Mounting Financial and Consumer Woes
Ola’s financial situation continues to worsen, with losses deepening. By the end of December 2024, the company reported a net loss of ₹5.64 billion ($65 million), up from ₹3.8 billion ($44 million) the previous year.
Meanwhile, concerns over product quality and service have escalated. In October 2024, India’s consumer protection agency issued a legal notice to Ola following 10,664 customer complaints about delayed deliveries, subpar service, misleading advertising, and manufacturing defects. While Ola claimed to have resolved 99% of these cases, authorities remained skeptical and proceeded with a more in-depth investigation.
Job Cuts and Leadership Crisis
To curb financial losses, Ola is reportedly laying off 1,000 employees across procurement, fulfillment, customer service, and charging infrastructure. Although some of these cuts are linked to increased automation in manufacturing, analysts suggest they also indicate deeper financial instability.
Adding to the turmoil, the company has experienced frequent executive departures. In late 2024, several key figures—including the Chief Technical Officer (CTO), Chief Marketing Officer (CMO), Chief People Officer (CPO), Chief Business Officer (CBO), and head of sales—resigned. In early 2025, Ola’s CEO stepped down after just three months in the role, followed by the Chief Financial Officer’s (CFO) exit the next month.
Government Aid and Future Uncertainty
On March 5, 2025, Ola disclosed that it had received an $8.5 million subsidy under India’s Production Linked Incentive (PLI) Scheme, becoming the first two-wheeler EV company to benefit from this government initiative.
While this funding could support battery production, experts caution that Ola’s ability to invest in new technologies and research remains constrained due to ongoing financial struggles.
“If these financial troubles persist, investor confidence may decline further, creating more operational and funding challenges,” said Vivek Kumar, an automotive analyst at GlobalData.
As Ola faces shrinking sales, financial instability, and leadership uncertainty, its future in India’s competitive EV market hangs in the balance.
