Ola Electric Leads Indian EV Two-Wheeler Market With Strong Margins

In a fast changing electric vehicle (EV) scene, Ola Electric has emerged as a market leader in India’s two-wheeler segment. Ola has acquired considerable market share while maintaining remarkable profit margins. Here’s a closer look at what makes Ola Electric stand out in this competitive market.

A report by global brokerage firm Bernstein reveals that Ola Electric posted a gross margin of 18.4 percent for Q1 FY2025, well ahead of competitors like TVS (14 percent), Bajaj (12.3 percent), and Ather (7 percent). The analysis credits Ola’s aggressive localisation and vertical integration strategies for cutting down production costs. By sourcing materials locally and handling much of the manufacturing in-house, the company has been able to reduce expenses, further bolstering its margins. 

The direct-to-consumer (D2C) business model also played a crucial role in Ola Electric’s success. By bypassing intermediaries, the company has gained greater control over pricing and improved profitability. Additionally, access to government subsidies such as the Production Linked Incentive (PLI) and Faster Adoption and Manufacturing of Electric Vehicles (FAME) schemes has further boosted its financial position.