Ola Electric reduces the price of its cheapest E-Scooter by 12.5%. Now available at a 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 on Monday.

The company’s marketing chief, Anshul Khandelwal, confirmed that the price cut applies to the S1X model, with the base variant now priced at 69,999 rupees, down from 79,999 rupees. The prices of other S1X variants were also slashed, ranging from 5.6% to 9.1%.

Last August, Ola, backed by SoftBank Group, introduced the S1X scooters. This move followed a surprising reduction in government subsidies for e-scooter purchases.

However, analysts are concerned that the price cuts may impact Ola negatively. An unnamed Mumbai-based analyst stated that Ola is already selling its higher S1X variants at a loss and that selling the base variant at a lower price may not be sustainable for the company.

Despite the challenges, Ola achieved sales of 326,443 e-scooters in fiscal 2024, surpassing their revised target of 300,000. However, the company’s cheapest e-scooter still costs more than the lowest-priced variants from competitors such as TVS Motor and Ather, which are priced above 100,000 rupees.

Conversely, it is priced lower than Honda’s Activa, India’s top-selling petrol scooter. Currently, Ola holds a 35% market share in the e-scooter market, followed by TVS with 19% and Ather with 12%, according to government data.

The e-scooter market accounted for 5% of total two-wheeler sales in fiscal 2024, as per industry data. * (This story has not been edited by NDTV staff and is published from a syndicated feed.

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