Bajaj Auto Surpasses Ola Electric to Become the Leading Two-Wheeler EV Brand in December

In December 2024, Bajaj Auto has emerged as the new leader in the electric two-wheeler market, overtaking Ola Electric. According to retail sales data from the VAHAN portal, Bajaj Auto now commands a 25% market share, up from 22% the previous month, while Ola Electric’s market share has dropped to 19%. This shift highlights the increasing competition and evolving dynamics within the electric vehicle (EV) sector.

Bajaj Auto’s Market Leadership and Key Drivers Behind Success

Bajaj Auto’s rise to the top of the electric two-wheeler market can be attributed to several strategic moves. The company’s launch of the Chetak 35 series, which is designed to be both feature-rich and affordable, has been a game-changer. These new models are priced approximately 45% cheaper than previous versions, which has made them highly attractive to cost-conscious consumers seeking a premium electric scooter experience at a lower price point. This pricing strategy has helped Bajaj Auto capture a larger portion of the market.

Intensifying Competition Among Electric Two-Wheeler Manufacturers

The electric two-wheeler market in India is becoming increasingly competitive, with several key players expanding their portfolios and offerings.

TVS Motors

TVS Motors has maintained its position as the second-largest player in the electric two-wheeler market, with a market share of 23%. The company has significantly expanded its product range by offering electric scooters with varying battery capacities (2-4 kWh).

The TVS iQube, the company’s flagship model, benefits from an extensive retail network that includes nearly 4,000 stores, with 250 of those outlets dedicated exclusively to electric vehicles (EVs). This widespread presence has given TVS an edge in reaching more consumers and maintaining steady growth.

Ather Energy

Ather Energy, another major player in the electric scooter market, has found success with the launch of its Rizta scooter, aimed at families. This model has been particularly popular in states with strong EV demand, such as Gujarat and Maharashtra. The company is also expanding its footprint in North India, aiming to further solidify its position as a leading brand in the electric vehicle space.

Ola Electric Faces Increased Challenges

Ola Electric, once the undisputed leader in the electric two-wheeler market, has seen its market share drop due to rising competition and pricing challenges. Despite efforts like the launch of a more affordable swappable battery version of its S1 scooter, priced at ₹59,999, and the expansion of its store network from 800 to 4,000 locations, Ola Electric has struggled to maintain its competitive edge. The rise of competitors offering more affordable and feature-packed electric scooters has made it difficult for Ola to keep up with the rapidly changing market demands.

Future Outlook for Bajaj Auto, TVS Motors, and Ola Electric

The future of the electric two-wheeler market looks promising, with each company taking different approaches to maintain and grow their market positions.

Bajaj Auto’s Prospects

Bajaj Auto’s strategy of combining innovation with cost efficiency, particularly with the Chetak 35 series, is expected to continue boosting its market share and profitability. With a focus on providing quality electric scooters at lower prices, Bajaj is likely to maintain its leadership in the market for the foreseeable future.

TVS Motors’ Continued Growth

TVS Motors is strengthening its market position by expanding its product lineup and retail presence. With a focus on reaching new consumers and maintaining its foothold in the EV space, TVS is poised for steady growth in the coming years. The company’s commitment to enhancing its electric scooter offerings ensures that it remains a strong contender in the market.

Ola Electric’s Future Plans

Ola Electric is planning to launch its in-house batteries by April 2025, which may give it a much-needed boost in terms of performance and competitiveness. However, the company will need to address the growing popularity of its competitors, which are offering affordable and feature-rich electric scooters to attract a wider audience.

Conclusion: A Competitive and Evolving Market

As the electric two-wheeler market continues to evolve, the competition is driving both innovation and affordability. With Bajaj Auto now leading the market, competitors like TVS Motors and Ather Energy are focusing on expanding their reach and product offerings. For Ola Electric, the path forward will require overcoming challenges in pricing and competition while innovating to stay relevant in the rapidly changing electric vehicle landscape.