Ola Electric Reduces Lowest E-Scooter Prices By 12.5%. Cost is Now…

India’s e-scooter market accounted for 5% of total two-wheeler sales in fiscal 2024. Ola Electric, India’s largest electric scooter maker, announced a 12.5% price reduction for its cheapest variant in an effort to boost sales after the government reduced subsidies.

Anshul Khandelwal, the company’s marketing chief, stated that the price of the S1X model’s cheapest variant was reduced to 69,999 rupees from 79,999 rupees, with other variants also receiving price cuts ranging from 5.6% to 9.1%. The SoftBank Group-backed company launched the S1X scooters in August 2023, shortly after the government reduced incentives for e-scooter purchases.

Despite the price cuts, Ola’s cheapest e-scooter remains priced higher than the lowest-priced variants at TVS Motor and Hero MotoCorp-backed Ather, which cost above 100,000 rupees, but lower than Honda’s Activa, which retails at 78,000-82,000 rupees. Ola holds a 35% market share in the e-scooter market, while TVS and Ather hold 19% and 12%, respectively, according to government data.

The Bengaluru-based company exceeded its fiscal year 2024 sales target of 300,000, selling 326,443 e-scooters. However, it had lowered its estimate by two-thirds.

Some analysts have expressed concerns that selling the base variant at a lower price may not be financially viable for Ola in the long term. This move comes as the Indian e-scooter industry continues to evolve and face challenges such as reduced government incentives for electric vehicles.

With the market accounting for 5% of total two-wheeler sales, the competition remains fierce, and companies are strategizing to stay ahead in the evolving landscape.