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Is Ola Electric Stock good to buy
Is Ola Electric Stock good to buy

Ola Electric, which was once touted as the next big thing in the electric two-wheeler industry, is now facing a hard time surviving in the market. Ola’s mighty fall is reflected in its share price as well which took a drastic hit to reach its all-time low of INR 66.6 in November 2024 from its all-time high of INR 157.4 in August 2024.
Ola Electric timed its entry to perfection into the electric two-wheeler market. This market was going through a drastic surge in demand due to rapid urbanization, high population density in cities and rising petrol prices which created the demand for electric two-wheelers. Also, in these changing times, know about the quality EV stocks you can buy for the future.
Ola Electric Mobility latched onto this opportunity and launched their EV two-wheelers with multiple variations and some modern connectivity features such as GPS navigation, smartphone integration, and vehicle-to-vehicle communication.
Despite some moderate competition from the already established brands Ola quickly managed to capture the market with their products and soon became the dominant force in the electric two-wheeler segment with a market share of 24%.
why ola electric share is falling?
Ola's cost-effective commuting method with only Rs.0.2 per km and modern connectivity features made it a household name. However, soon its two-wheelers were made a subject of public scrutiny because of large scale defects in their scooters and poor customer service experience.
Some of the Ola scooters even caught fire while many were left stranded by the users because of lackluster customer service management. Also, the bad public image garnered by the issues faced by Ola users contributed to the falling reputation of Ola.
Ola’s road ahead does not look to be a smooth sail as they are faced with other issues besides poor customer service. We have listed some of the challenges faced by Ola which could hinder their path to recovery:
Senior executives exiting the ship
When a company is faced with challenges, the role of top brass of the management becomes crucial in such situations. However, in the case of Ola Electrics it's the opposite that is happening where the top management of the company such as Suvonil Chatterjee and Anshul Khandelwal, who have been an integral part of the company have parted ways with them in the time of crisis.
Suvonil Chatterjee who joined Ola in 2017 as the design head also lead them in projects like Ola Krutium and Ola Maps was later made the Chief Technology and Product Officer in 2017.
On the other hand, Anshul Khandelwal started his journey in 2018, as head of marketing and revenue at Foodpanda and later was made the Chief Marketing Officer at Ola Electric. Top level managers leaving the boat at the time of crisis is never a good sign for a company.
Increasing competition from big players
India's electric two-wheeler segment is forecasted to grow at a staggering pace of 40.34% CAGR between FY2024 to FY2031. Although Ola had a dominant share in this market segment but the existing technical lapses in its vehicles and poor customer service coupled with the strong competition from the big daddies of the India two-wheeler market- Bajaj and TVS has made things further difficult for Ola.
As a result, its market share in the electric two-wheeler segment has drastically declined to 19% from 24%. On the other hand, Bajaj and TVS which are among the top auto stocks in India have started gaining dominance in the electric two-wheeler segment too with Bajaj leading with 25% market share followed by TVS with a market share of 23%.
Positives for Ola Electric in 2024
Despite tough challenges in the latter half of the year, Ola had some positives which they highlighted in their annual reflection:
Ola Reverse 2024
In their annual reflection, "Ola Reverse 2024", held on December 27 they pointed out the giant strides taken by India in the electric two-wheeler sector and the role of Ola in changing the commuting habits and facilitating faster adoption of the EVs and its economic benefits.
The report also highlighted how the Ola S1 scooters played its part towards a sustainable environment by saving INR 13 billion in fuel costs as 8 lakh active users covered 5.5 billion kms on their scooters.
Extensive expansion in 2024
Despite the backlash Ola managed to unprecedently expand their distribution network to 4,000 stores across the nation which is a four-fold increase than the last year. It consists of 3,200 new co-located service stations which is among the most in EV infrastructure globally.
This expansion move by Ola could address the long-standing customer service issue of Ola scooter users and could also increase the company's presence in smaller towns. Additionally, amidst the chaos, Ola has managed to boost their presence in the Tier-2 and Tier-3 cities, which is a good sign for the company.
Way forward for Ola Electric
After facing severe criticism for their manufacturing flaws, bad customer redressal mechanism and a top management rejig, Ola has finally decided to address the issues with their network expansion plans.
Additionally, Ola is working towards having 2,000 company-owned outlets whereas currently it has 1,000 network partners at their disposal which they aim to increase by March 2025. Also, Ola is striving towards launching 20 new vehicles which include scooters, motorcycles, and three-wheelers to regain their dominance in urban cities and bolster their presence in tier 2 and tier 3 towns.
Even though Ola is trying to regain its foothold in the Indian EV sector still it has a long way to go to rectify the dent to its image. Currently Ola’s share price is trading at INR 73 which is too low from its all-time high of INR 157. Investors should assess the company and its perception carefully before investing in Ola for the future.

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