TVS Motor, Bajaj Auto Overtake Ola Electric in India’s EV Two-Wheeler Market

The rankings in India’s electric two-wheeler segment witnessed a notable reshuffle this month as legacy automakers TVS Motor and Bajaj Auto claimed the top two positions, while Ola Electric slipped to third amid a sector-wide slowdown.

TVS Motor and Bajaj Auto grew their market shares to 25% and 22.6% respectively in May, despite experiencing marginal declines in sales volume.

Ola Electric, which had been the market leader just over a year ago, saw its share shrink dramatically to 20% in the first 26 days of May down from 22.1% in April, according to data from the government-run Vahan portal.

The company registered 15,221 vehicles during the period, a steep 60% drop from 37,388 units in May 2023.

Similarly, Ather Energy reported a decline in market share, falling to 13.1% in May from 14.9% in April, with vehicle registrations decreasing to 9,962 units from 13,287 units during the same period.

Ola Electric Raises Fresh Capital

In parallel, Ola Electric has received board approval for a new fundraising round, just nine months after its initial public offering (IPO). The EV maker will raise up to ₹1,700 crore through the issuance of non-convertible debentures (NCDs) and other debt securities, as per a filing made on Thursday.

The funds will be raised in one or more tranches, though the company which continues to face regulatory scrutiny, operational challenges, and softening investor sentiment has not disclosed details regarding the intended use of proceeds.

“… the board of directors… has inter-alia, considered and approved the proposal of fund raising by borrowing funds within the borrowing limits approved by the shareholders of the company, by way of: (i) term loans, working capital facilities; or (ii) issuance of NCDs or any other eligible debt securities, in one or more tranches, on a private placement basis or such other methods,” the filing stated.

The capital raise forms part of Ola Electric’s broader effort to shore up its financial position and sustain operations amid intensifying competition, a declining market capitalisation, and eroding market share.