Ola Electric, a leader in India’s electric vehicle (EV) market, is set to embark on an aggressive expansion journey to increase its store network from 800 to 4,000 within just 19 days, by December 20, 2024. This announcement comes in the wake of recent market share challenges, as Ola looks to solidify its position and accelerate EV adoption across India.
Initially, Ola Electric had announced plans to expand its store count to 2,000 by March 2025. However, in a recent announcement made on December 2, 2024, the company revealed that it has decided to double its target and reduce the timeline significantly. The company’s goal is to open nearly 169 new stores daily, bringing its total store count to 4,000 by December 20, 2024. This ambitious move is part of the company’s drive to boost EV adoption, especially in large, underserved hinterland markets where two-wheeler sales dominate.
Despite Ola Electric’s market leadership, the company’s market share has been experiencing fluctuations. Data from Vahan registrations indicate a significant dip in its share, from 52% in April to 25% in November 2024. The company’s rivals, such as TVS Motor Company and Bajaj Auto, have seen steady growth. TVS’s market share surged from 12% in April to 23% in November, while Bajaj Auto’s share increased from 12% to 22% during the same period.
While Ola remains the market leader in the electric two-wheeler segment, the growing competition from TVS and Bajaj suggests that the race for market dominance may intensify in the coming years.
Ola Electric’s plan to expand its network is designed to counteract these challenges and maintain its leadership in the market. The company is particularly focused on Tier-2 and Tier-3 cities, areas that have been largely underserved in terms of EV infrastructure. Bhavish Aggarwal, the Chairman and Managing Director of Ola Electric, has highlighted that the expansion is crucial to achieving the company’s mission of reducing India’s reliance on internal combustion engine (ICE) vehicles, a goal it calls the #EndICEAge movement.
The company’s new strategy includes launching 3,200 new stores that will be co-located with service facilities, giving customers a one-stop destination for sales and support. This move will create India’s largest EV distribution network, extending across all the country's pin codes.
Ola Electric’s store expansion aligns with the company’s broader strategy to drive EV growth through product innovation. On November 26, 2024, the company launched two new scooter models, the Gig and S1 Z Range, priced between ₹39,999 and ₹64,999. Additionally, Ola introduced the PowerPod, a portable inverter priced at ₹9,999, which allows homes to be powered using the batteries from its scooters. These new offerings are expected to further bolster the company’s market position.
Future Outlook
Ola Electric’s rapid expansion is a key component of its vision for pan-India EV penetration. The company believes that its large-scale distribution network will not only improve accessibility but also help drive the widespread adoption of electric vehicles in India. By focusing on both the retail and service infrastructure, Ola aims to strengthen its hold on the electric two-wheeler market while pushing for greater EV adoption nationwide.