India’s prime electrical scooter maker Ola Electrical logged its lowest month-to-month gross sales this yr in September, authorities information confirmed, because the SoftBank-backed agency sees its dominance eroded by smaller opponents and servicing community challenges.
Ola Electric, which made its inventory market debut about two months in the past, bought 23,965 autos in September, recording a month-on-month decline for the second consecutive month.
Its falling month-on-month gross sales has seen its market share decline for 5 straight months to 27 p.c in September, from over 50 p.c in April, the information confirmed.
In that interval, Ola’s closest rivals TVS Motor and Bajaj Auto have narrowed the hole, reporting market share positive factors for 5 and three straight months, respectively.
Ola Electrical declined to remark in the marketplace share loss and its servicing community.
Slowing gross sales at Ola, whose costs have usually undercut the market, pose additional challenges to the corporate’s monetary outcomes. It’s but to show a revenue.
Analysts attribute Ola’s narrowing result in rivals launching newer fashions priced nearer to these of Ola, in addition to its personal strained service community that’s seeing scooters pile up.
A ramp-up in dealership networks has additionally been key for Bajaj and TVS in difficult Ola, in line with Jay Kale of Elara Capital.
During the last yr, Bajaj has boosted the dealership depend for its Chetak e-scooters from round 100 to over 500, as of June. Ola’s dealership depend has solely risen from 750 to 800.
Final month, a 26-year-old man was arrested for allegedly setting fireplace to an Ola showroom within the southern Karnataka state over unsatisfactory servicing of a lately bought e-scooter.
HSBC analysts stated in a word final month that Ola’s service could be one of many “key drivers” for sustaining its market share.
© Thomson Reuters 2024
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