Ola Electric Suffers Big Jolt, Quarterly Loss Increases to Rs 870 Crore

The difficulties have increased for Ola Electric included in large electric two-wheeler companies. The loss of the company has increased to about Rs 870 crore in the first quarter of this year. A huge discount on the company’s electric scooters is a major reason behind this.

Since bringing an Initial Public Offer (IPO) in August last year, Ola Electric has been facing challenges such as a decrease in sales, increasing regulatory pressure and tight competition from other electric two-wheeler companies. Ola Electric has reported that it is considering taking a loan of about Rs 1,700 crore to repay the current date. Electric two-wheelers have a major stake in sales, but in the last few months companies like Bajaj Auto and TVS Motor have dent its market share. Sales of electric scooters with Affordable Price of Bajaj Auto and TVS Motor have increased rapidly.

Revenue from Ola Electric operations in the first quarter declined by 61.8 percent to about Rs 611 crore. The total expenditure of the company is about 31.6 percent to more than Rs 130 crore. Market analysts have reported that the average revenue on the sale of the company per unit has decreased. This is the major reasons behind this offering discounts and more sales of electric scooters with low price. In the first quarter, Ola Electric’s vehicle registrations decline more than 52 percent to 56,760 units on a year-on-year basis. Electric scooters of the company’s entry-level have a stake of about 69.3 percent in the volume. The figure was 43.1 percent in the same period last year.

Last month, TVS Motor secured a leading position in the sales of electric two-wheelers. Ola Electric was second in this market. According to sales data on the vehicle portal, the sales of TVS Motor in April have the highest 19,736 units. Ola Electric has finished second with sales of 19,709 units. Bajaj Auto is third and Ather Energy has been ranked fourth. The new electric vehicle policy recently announced in Maharashtra can increase sales in this market.