Ola Electric entered the Indian market with a level of bravado seldom seen in the automotive sector. It promised a revolution, a massive Gigafactory, and a complete dismantling of the internal combustion engine’s legacy.
However, its recent financial performance and operational reality suggest that the revolution has stalled. The company’s share price has plummeted by Rs. 59.63 over the last year, landing at a precarious Rs. 34.27 today. This 63.46% drop is not just a market fluctuation; it is a loud signal of fading investor confidence and a reflection of deep-seated internal issues that are now reaching a boiling point.
Also read: Ola’s EV Struggle Signals Challenges for India’s Green Mobility
What ails Ola?
The primary ailment affecting Ola is a profound disconnect between its marketing promises and the actual customer experience. While the company succeeded in creating a high-tech, aspirational brand, the physical infrastructure required to support that brand has been severely lacking.
Reports of hardware failures, software glitches, and spontaneous battery issues have flooded social media platforms. Unlike traditional manufacturers who have spent decades building robust dealership and service networks, Ola attempted a direct-to-consumer model that left many riders stranded. When a vehicle breaks down, the lack of accessible, efficient service centers transforms a minor technical error into a long-term logistical nightmare for the owner. This friction in the after-sales experience is now the single greatest threat to the brand’s longevity.
Cult of the CEO
Strategically, Ola Electric has prioritized speed over stability at every turn. Bhavish Aggarwal’s vision for the company involved scaling at a pace that the current Indian EV ecosystem was perhaps not ready to sustain. By pushing for massive volume without first perfecting the reliability of the product, the company has incurred significant reputational damage.
The recent public spats between leadership and disgruntled customers and personalities on social media have only added fuel to the fire, suggesting a corporate culture that is simultaneously willing to go on the offensive and defensive rather than seek a solution. This could also be seen in the manner in which Agarwal took a swipe at veteran auto journalist Hormazd Sorabjee.
For a brand that relies heavily on the “cool factor” to attract young, tech-savvy buyers, this shift in public perception is devastating. A brand built on the promise of the future cannot afford to be seen as a relic of poor customer service and unreliable engineering.
Legacy players are firing up growth engines
Furthermore, the competitive landscape has shifted dramatically. Traditional giants like TVS and Bajaj have entered the EV space with a more measured, methodical approach. These companies possess something Ola lacks: a deep understanding of manufacturing consistency and an existing, sprawling service footprint.
As these incumbents refine their electric offerings, the novelty of the Ola S1 is wearing off. Customers are beginning to value reliability and after-sales support over sleek touchscreens and high-decibel marketing campaigns. The entry of legacy players means that Ola no longer has the luxury of being the only serious player in the high-performance electric scooter segment.
Stuttering performance
The numbers bear this out. Ola’s market share in India’s electric two-wheeler (E2W) segment has dropped from around 40% in late 2024 to around 22% in May 2025, slipping to third place behind TVS and Bajaj. with some reports in November 2025 suggesting further dips to approximately 7%.
Financial pressure is also mounting alongside the operational failures. The massive capital expenditure required for the Gigafactory and the development of new models like the electric motorcycle range has put a strain on the balance sheet. Investors who once viewed Ola as the Tesla of India are now questioning whether the company can achieve profitability while its core product requires such high levels of warranty-related spending.
The steep decline in share price reflects a market that is re-evaluating Ola’s valuation from a high-growth tech startup to a capital-intensive manufacturing firm. If the company cannot stabilize its service operations and improve the build quality of its scooters, the path to financial recovery will remain elusive.
The way forward
To survive this crisis, Ola must pivot from being a software-heavy disruptor to a legitimate automotive manufacturer that prioritizes engineering integrity and customer satisfaction above all else. This requires a cultural shift within the organization. The focus must move away from aggressive monthly sales targets and toward the Net Promoter Score.
After all, building a world-class factory is a significant achievement, but it is rendered moot if the products leaving that factory fail to meet the basic reliability standards of the Indian commuter. The next twelve months will be a litmus test for Ola’s leadership to see if they can transition from a phase of hyper-growth to a phase of sustainable maturity. Without this evolution, the company risks becoming a cautionary tale of over-promising and under-delivering in a market that rewards substance over style.
