Ola Electric Reduces Prices of Cheapest E-Scooter by 12.5%. Now Available at Lower Cost.

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 in an effort to stimulate sales following a decrease in government subsidies. Anshul Khandelwal, the company’s marketing chief, disclosed that the price of the cheapest variant of its S1X model has been slashed to 69,999 rupees from 79,999 rupees.

Furthermore, the prices of other S1X variants were reduced by 5.6% to 9.1%. Last August, the SoftBank Group-backed company introduced the S1X scooters, amidst a surprise reduction in incentives for purchasing e-scooters by the government. However, some analysts are concerned about the sustainability of these price cuts, noting that Ola is already selling its higher variants of the S1X range at a loss.

Despite surpassing its sales target of 300,000 by selling 326,443 e-scooters in fiscal 2024, Ola had revised its estimate downward by two-thirds. Although Ola’s cheapest e-scooter is priced higher than those offered by TVS Motor and Hero MotoCorp-backed Ather, it remains more affordable than Honda’s Activa, India’s leading petrol scooter. Ola currently holds a 35% market share, with TVS and Ather controlling 19% and 12% of the market, respectively, according to government data.

The reduction in government incentives has created challenges for Ola, but the company’s recent price adjustments reflect its efforts to remain competitive in the evolving e-scooter market.