Last Updated:
Ola Electric shares dropped by 5.5% to Rs 81.20 in early trading on Monday, following a 33% slump in November sales
Ola Electric Shares Down 5% on November Sales
Ola Electric shares surged nearly 6.85% on Monday, reaching Rs 93.41 on the BSE, after CEO Bhavish Aggarwal announced ambitious plans to expand the company’s retail network. Aggarwal shared on X (formerly Twitter) that Ola intends to increase its store count from 800 to 4,000 by the end of December.
“Going from 800 stores right now to 4000 stores this month itself. Goal to be as close to our customers as possible. All stores opening together on 20th Dec across India. Probably the biggest single-day store opening ever! All stores have service capacity too,” said Bhavish Aggarwal’s X post on December 2.
The post further said that all these stores would open across India on December 20, 2024.
Taking the Electric revolution to the next level this month.Going from 800 stores right now to 4000 stores this month itself. Goal to be as close to our customers as possible.
All stores opening together on 20th Dec across India. Probably the biggest single day store opening…
— Bhavish Aggarwal (@bhash) December 2, 2024
The company’s shares were trading over 5% lower in early morning trade after its sales saw a sharp decline in November, dropping over 33% from 41,756 units in October to 27,746 units.
Despite the decline, Ola maintained a market-leading 25.09% share in the electric vehicle (EV) segment, though its margin over competitors TVS and Bajaj Auto has narrowed. TVS recorded 26,036 registrations, capturing a 23.55% share, while Bajaj Auto registered 24,978 units, holding a 22.59% share.
The overall EV market saw an 18% decrease in registrations in November compared to October, reflecting a post-festival slowdown. While Ola’s drop was significant, TVS and Bajaj Auto showed more stability with smaller declines of 13.4% and 12%, respectively, indicating intensifying competition in the EV space.
Year-to-date, Ola remains the market leader with 392,176 vehicles sold, holding a 37% share. TVS follows with a 19.5% share, having sold 201,966 units, while Bajaj Auto accounts for 16.6% with 173,721 units sold. Ather Energy holds an 11% share with over 100,000 units sold. However, Ola’s market share has been volatile throughout CY2024, peaking at 49.8% in May before dropping to 28.6% in September and rebounding to 31% in October due to festive discounts.
Despite this, the significant drop in November underscores increasing competition from TVS and Bajaj, which could intensify the race for market leadership in 2025.
For Q2 FY25, Ola Electric reported a reduction in its net loss to Rs 495 crore from Rs 524 crore in the same quarter last year. Revenue from operations rose 39% year-on-year to Rs 1,214 crore in the September quarter. However, on a sequential basis, the loss widened from Rs 347 crore in the previous June quarter.
EBITDA losses for the quarter stood at Rs 223 crore, improving from Rs 321 crore in the same period last year. On a quarter-on-quarter basis, operating losses widened from Rs 65 crore posted in Q1 FY25. EBITDA margins for the second quarter were reported at -28.4%, compared to -46% in the previous year.
Over the past three months, Ola’s shares have fallen by 27%. The company currently has a market capitalization of Rs 38,559 crore.
