Ola Electric, a manufacturer of electric two-wheelers, has experienced a decline in its market share over the past three months. The Bengaluru-based company's market share fell to 27% in September, down from 32% in August and 39% in July.

During the first quarter of FY25 (June quarter), Ola Electric reached its peak market share of 49%. However, recent data shows a concerning trend, with sales dropping significantly. According to Vahan data, Ola Electric sold 23,965 units in September, compared to 26,928 units in August and 40,814 units in July, marking an 11-month low.

Competitors such as Bajaj Auto, TVS Motors, Ather Energy, and Hero MotoCorp follow closely behind, with market shares of 21.27%, 20.26%, 14%, and 5%, respectively. The sharp decline in Ola Electric's market share comes in light of a report from Goldman Sachs, which predicts the company will reach EBITDA breakeven by the fiscal year ending in March 2027.

The drop in sales can be attributed to various issues, including customer complaints, malfunctioning hardware, and software glitches. A recent report indicated that Ola Electric received around 80,000 customer complaints per month, highlighting significant operational challenges.

For the June quarter (Q1 FY25), Ola Electric reported only a modest revenue growth of 2.8%, with revenues rising to 1,644 crore from 1,598 crore in the previous quarter. Despite this slight increase, the company successfully reduced its losses by 16.6%, reporting a loss of 347 crore for Q1 FY25. In the previous fiscal year (FY24), Ola Electric recorded revenues of 5,010 crore and a loss of 1,584 crore.

In a further sign of its struggles, Ola Electric, which went public in early August, saw its share price drop below 100 on Monday for the first time since its listing. Currently, its shares are trading at around 102 each, down from an initial public offering (IPO) price of 76 per share.

This decline in both market share and stock price underscores the challenges Ola Electric faces as it navigates a competitive landscape and seeks to address operational issues while striving for financial stability.

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