Ola Electric reduces lowest E-Scooter prices by 12.5%. Now costs…

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% reduction in the price of its cheapest variant. The company aims to boost sales following the reduction in government subsidies.

Anshul Khandelwal, the company’s marketing chief, revealed that the price of the cheapest variant of its S1X model has been reduced from 79,999 rupees to 69,999 rupees, representing a 12.5% cut. Additionally, the prices of other S1X variants were cut between 5.6% and 9.1%. The SoftBank Group-backed company launched the S1X scooters just months after the government lowered incentives to purchase e-scooters.

Despite the price cuts, some analysts argue that this strategy may have negative financial implications for Ola, particularly given the apparent loss on the higher variants of the S1X range. The company sold 326,443 e-scooters in fiscal 2024, surpassing its sales target of 300,000 units but with a revised estimate. Despite the reduction in prices, Ola’s cheapest e-scooter still costs more than the lowest-priced variants at TVS Motor and Hero MotoCorp-backed Ather, which are priced above 100,000 rupees.

However, it is priced lower than Honda’s Activa, which retails at 78,000-82,000 rupees. Ola accounts for 35% of the market share, while TVS and Ather control 19% and 12% of the market, respectively, according to government data. India’s e-scooter market holds a 5% share of total two-wheeler sales in fiscal 2024, as per industry data.

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