Bhavish Aggarwal-run Ola Electrical, which lately entered the general public market, is quick shedding market share within the home electrical two-wheeler area to its rivals amid growing competitors, and market analysts have warned buyers to stay “cautious” with its risky inventory.
A contemporary Jefferies report stated that TVS and Bajaj have expanded their portfolios with extra reasonably priced electrical two-wheelers. This shift has allowed them to realize between 4% and seven% of the market share, respectively, with TVS now holding 19% and Bajaj 18%.
In keeping with the report, Ola Electrical’s market share within the electrical two-wheeler market has slipped from 49% within the June quarter (Q1 FY25) to 33% in August on a month-to-date foundation.
Market watchers stated whereas the long-term potential of Ola Electrical, particularly given the EV market’s beneficial outlook, could be interesting, the present valuation seems to be fairly speculative.
“Traders needs to be cautious, particularly given the corporate’s ongoing losses and the excessive volatility in its inventory worth. For brand spanking new buyers, it might be clever to attend for a extra steady entry level or contemplate the inventory as a long-term play with a excessive risk-reward ratio,” stated Saji John, senior analysis analyst at Geojit Monetary Providers.
In keeping with analysts, the launch of lower-priced electrical automobiles and an aggressive discounting play by legacy gamers TVS and Bajaj are serving to them win the market share from their rival Ola Electrical.
Ola Electrical shares additional declined to shut at INR 126.26 apiece on Friday. From its all-time excessive, the scrip is now buying and selling about 20% decrease.
To spice up its prospects, the corporate final week launched electrical bikes throughout varied worth ranges.
Whereas bikes dominate the broader two-wheeler market in India, their share within the EV phase is at the moment simply 1%.
Jefferies highlighted that the success of Ola Electrical’s new mannequin will hinge on its on-road efficiency and the general profitability of electrical bikes in India. Bikes dominate the Indian two-wheeler market, accounting for 63% of whole volumes.
Jefferies anticipates an increase within the electrical two-wheeler market share from the present 5.6% to 13% by fiscal 2027.
