Business News

India's top electric scooter maker Ola Electric logged its lowest monthly sales this year in September, government data showed, as the SoftBank-backed firm sees its dominance eroded by smaller competitors and servicing network challenges. Ola Electric, which made its stock market debut about two months ago, sold 23,965 vehicles in September, recording a month-on-month decline for the second consecutive month. Its falling month-on-month sales has seen its market share decline for five straight months to 27% in September, from over 50% in April, the data showed. In that period, Ola's closest rivals TVS Motor and Bajaj Auto have narrowed the gap, reporting market share gains for five and three straight months, respectively. Ola Electric did not respond to a Reuters email seeking comment on the market share loss and its servicing network. Slowing sales at Ola, whose prices have often undercut the market, pose further challenges to the company's financial results. It is yet to turn a profit. Analysts attribute Ola's narrowing lead to rivals launching newer models priced closer to those of Ola, as well as its own strained service network that is seeing scooters pile up. A ramp-up in dealership networks has also been key for Bajaj and TVS in challenging Ola, according to Jay Kale of Elara Capital. Over the last year, Bajaj has boosted the dealership count for its Chetak e-scooters from around 100 to over 500, as of June. Ola's dealership count has only risen from 750 to 800. Last month, a 26-year-old man was arrested for allegedly setting fire to an Ola showroom in the southern Karnataka state over unsatisfactory servicing of a recently purchased e-scooter. HSBC analysts said in a note last month that Ola's service would be one of the "key drivers" for maintaining its market share.