Bajaj vs Ola: Fight for EV Dominance Intensifies as Chetak Takes Lead in Market Share

Bajaj Chetak Electric has for the first time won the electric vehicle two-wheeler market race in December 2024, surpassing its close rivals TVS Motor’s iQube and Ola Electric. Chetak ended the year with sales of 18,276 units as compared to 17,212 and 13,769 units sold by its competitors, TVS Motor and Ola Electric, respectively. Ather Energy, another rival, stood fourth with sales of 10,421 units. 

With this, Chetak’s market share too has increased to 25 per cent largely due to strong sales during the festive season. TVS iQube holds 23 per cent market share followed by Ola Electric’s 19 per cent and Ather Energy 14 per cent in the last month of 2024, as per the Government’s Vahan data. 

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Bajaj replaced its earlier petrol-powered Chetak model with an electric one to keep pace with the changing technology. Bajaj Chetak, donned in electric attire was launched in 2020. However, its much-awaited entry in the new segment collided with the Covid-19 pandemic, taking a toll on its sales. 

On the other hand, Bhavish Aggarwal’s Ola Electric made its debut in the two-wheeler segment with the launch of the Ola Electric scooter in June 2021. While the segment was first tapped in by the legacy players, Aggarwal said he entered the market with confidence backed by nearly two years of preparation. He consequently emerged as the leader of the EV two-wheeler for around two consecutive years in the calendar years 2022 and 2023. 

“I have always been an outsider in everything I have done. My confidence comes from intelligence and preparation...Only after spending over two years learning about EVs did I figure our opportunity in it,” Aggarwal had earlier told Outlook Business in an interview. 

The intense competition between Bajaj’s Chetak and its rivals like Ola Electric, TVS Motor and Ether Energy to rule the EV two-wheeler segment can be seen not only in the strategies employed by them to capture more market share but also in the verbal spat between the auto heads. 

The verbal battle was started by Bajaj’s Auto MD Rajiv Bajaj during the launch of new Pulsar 250 in 2021, where Bajaj said, “We are champions...Champions eat OATS.” By OATS, Bajaj hinted towards its rivals Ola Electric, Ather Energy and Tata Motors and SmartE. With his remark, he pointed out that Bajaj’s rivals are still emerging new-gen EV startups. 

Replying to Bajaj’s jibe, Ola Electric founder Bhavish Aggarwal told Forbes India that he likes sipping his drink with ICE cubes in it. 

“I put ICE cubes in my drink, and enjoy sipping it...ICE cubes will melt when we roll out EV cars,” said Aggarwal. 

Chetak’s leadership in the segment has been a gradual trend, particularly in the last quarter of the calendar year 2024. Bajaj’s market share increased from 20 per cent in October to 25 per cent in December, whereas Bhavish Aggarwal’s Ola Electric share witnessed a downward trend from 30 per cent in October to 19 per cent in December, according to Vahan Portal data. 

Additionally, Ola was the second biggest player in the segment until November 2024 with 24 per cent market share, followed by TVS Motor with a 23 per cent hold on the segment. But Ola lost its position to TVS as its market share came down to 19 per cent whereas TVS remained at 23 per cent. 

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The dip in Ola Electric’s market share has come despite the company’s efforts to boost sales. The company launched a campaign called BOSS Biggest OIa Season Sale ahead of the festive season in the first week of October. 

Ola Electric trouble isn’t just limited to losing its market grip. The company posted a consolidated net loss of Rs 495 crore in Q2 FY25, whereas Bajaj Auto reported a rise of 9.2 per cent increase in net profit on a standalone basis at Rs 2,005.04 crore. TVS Motor too recorded a 41.4 per cent increase in consolidated net profit at Rs 588.13 crore in Q2 FY25. 

Additionally, Ola has come under the government’s scanner after nearly 10,000 customers complained about its service quality. The issue was addressed by Ola Electric CEO in the earnings call. 

“Over the last quarter or so, especially in Q2, we had a bit of a capacity challenge in service. Our sales have expanded much faster than we have expanded our service network,” said Aggarwal.