Bajaj Auto has emerged as the new leader in the electric two-wheeler market, surpassing Ola Electric in December 2024. According to retail sales data from the VAHAN portal, Bajaj now commands a 25% market share, marking a 3% increase from the previous month. Meanwhile, Ola Electric’s share dropped to 19%, a 5% decline, as competition heats up. TVS Motors retained its position as the second-largest player with a 23% market share.
Key Drivers Behind Bajaj Auto’s Success
Bajaj Auto’s growth can be attributed to its strategic launch of the Chetak 35 series, which offers feature-rich scooters at a lower production cost—45% cheaper than its previous models. This move has resonated with cost-conscious consumers seeking premium yet affordable electric scooters.
Competition Intensifies
- TVS Motors:
TVS has expanded its portfolio by offering scooters with varying battery capacities (2-4 kWh). The company’s flagship I-Qube has benefitted from its extensive network of nearly 4,000 stores, including 250 EV-specific outlets. - Ather Energy:
Ather Energy has gained traction with the launch of its family-oriented Rizta scooter, particularly in strong EV markets such as Gujarat and Maharashtra. The company is also focusing on expanding its presence in North India.
Ola Electric Faces Challenges
Ola Electric, which once dominated the EV market, has experienced a downturn in market share due to increased competition and pricing challenges. Despite efforts like launching a swappable battery version of the S1 scooter at ₹59,999 and expanding its network from 800 to 4,000 stores, the company has struggled to maintain its lead.
Future Outlook
- Bajaj Auto:
Bajaj’s focus on innovation and cost efficiency with the Chetak 35 series is expected to bolster its margins and market position. - TVS Motors:
TVS continues to strengthen its footprint and product offerings, ensuring steady growth. - Ola Electric:
Ola plans to introduce its in-house batteries starting April 2025, which may help improve its competitiveness. However, the company needs to address the growing appeal of competitors’ affordable and feature-packed options.
As the electric two-wheeler market evolves, intensified competition is driving innovation and affordability, benefiting consumers while reshaping the industry landscape.
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