Ola Electric reduces lowest E-Scooter prices by 12.5%. It 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, reduced the price of its cheapest variant by 12.5% in an effort to boost sales after the government reduced subsidies. The company’s marketing chief, Anshul Khandelwal, announced that the price of the cheapest variant of its S1X model was reduced to 69,999 rupees (about $839) from 79,999 rupees.

Prices of other S1X variants were also cut between 5.6% and 9.1%. The SoftBank Group-backed company launched the S1X scooters last August, shortly after the government lowered the incentives to buy e-scooters. However, some analysts express concern that the price cuts could negatively impact Ola’s financials, as the company is already selling higher variants of the S1X range at a loss.

Despite the price cuts, 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, but less than Honda’s Activa, India’s top-selling petrol scooter, which retails at 78,000-82,000 rupees. In fiscal 2024, Ola sold 326,443 e-scooters, surpassing its target of 300,000 but it had lowered its initial estimate by two-thirds. Ola holds a 35% market share in the e-scooter market, while TVS and Ather control 19% and 12% respectively, according to government data.

India’s e-scooter market accounted for 5% of total two-wheeler sales in fiscal 2024, according to industry data.