In the dynamic Indian electric two-wheeler (E2W) market, September 2025 witnessed some notable shifts in registrations and market positions, with Ather Energy outperforming Ola Electric in monthly registrations despite sector-wide challenges. According to Vahan data released on September 30, total E2W registrations in India declined 8.3% month-on-month to 96,205 units in September from 104,950 in August, reflecting broader supply constraints, including a significant rare earth magnet shortage.
Ather Energy VS Ola Electric
Ather Energy climbed to third place in September with 16,558 E2W registrations, down 8.35% from 18,066 in August. Meanwhile, Ola’s registrations fell sharply by 35%, dropping to 12,223 units from 19,020 the previous month. This decline contrasts with Ola’s claims during their September campaign, “Ola Muhurat Mahotsav,” where the company offered their scooters at a discounted price of INR 49,999 and claimed to have sold all units within “5 minutes” of the sale window opening on September 24. Despite the promotional success, the registrations data indicates a more challenging operational reality.
Supply Chain and Incentive Issues Impact Ather
Ather’s slowed growth can be attributed partly to the ongoing rare earth magnet shortage—a critical component for EV motor manufacturing largely sourced from China. This shortage caused Ather to defer submitting claims worth INR 26.2 crore under the Centre’s PM E-DRIVE scheme, designed to offer production-linked incentives to EV manufacturers. The intermittent disruption forced them to deviate temporarily from the manufacturing guidelines prescribed under the PM E-DRIVE scheme and the Phased Manufacturing Program (PMP).
It is currently in discussions with government authorities seeking exemptions for magnet sourcing while developing a heavy rare earth-free motor certified by the Automotive Research Association of India (ARAI), positioning itself to mitigate future supply risks.
Ola Electric’s Financial and Market Position
Bhavish Aggarwal led startup, reportedly filed a claim of about INR 400 crore under the PLI scheme for FY25, reflecting its ambitious scale based on approximately INR 3,000 crore of eligible registrations. Despite the drop in registrations, Ola continues to invest heavily in new motor technology, including rare earth-free motors similar to those Ather is developing. However, the recent decline highlights increasing market competition and operational challenges faced by new-age EV players amid supply constraints.
Broader Market Trends
The Indian E2W market also saw Bajaj Auto regaining the second spot in monthly registrations with a strong 52% jump to 17,972 units in September after supply issues in August caused a slump. TVS, the market leader, experienced a 13% drop to 21,052 units—a decline aligned with sector-wide supply bottlenecks. Other emerging EV companies such as Simple Energy, Greaves Electric Mobility, Pure EV, and Kinetic Green Energy similarly faced declines in registrations, illustrating the widespread impact of rare earth magnet scarcity on the pace of the electric vehicle market.
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Recent Launches and Innovations by Ather
Despite logistical hurdles, Ather continues to push innovation and new product launches. Recently, they expanded its product portfolio with the launch of Ather 450X Pro Plus, which boasts enhanced range, faster charging, and updated software features. The company also focuses on scaling its charging infrastructure, expanding both fast and regular charging points across key Indian cities to improve customer convenience and reduce charging anxiety—a major barrier to EV adoption.
Ola Electric’s Latest Developments
Ola Electric is equally active, expanding its manufacturing capacity with a new plant in Tamil Nadu and launching new models like the Ola S1X Pro and other performance-oriented electric scooters. The company is also strengthening its digital sales and service ecosystem to streamline customer experience and foster brand loyalty.
Financial Snapshot of Ather Energy
In Q1 FY26, they trimmed its net loss slightly to INR 178.2 crore from INR 182.9 crore in the same quarter the previous year, showing steady improvements in cost management. Meanwhile, its revenue surged 79% to INR 644.6 crore, reflecting growing sales momentum amid tight market conditions. Ather’s stock showed modest declines during September amid these mixed signals but remains a key player in India’s fast-growing E2W EV market.
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In summary, September 2025 revealed both challenges and opportunities in India’s E2W electric vehicle sector. Ather Energy’s rise over Ola in monthly registrations highlights the intense competitive environment shaped by component shortages and supply chain disruptions. Both players continue innovating and scaling, supported by government incentives, to tap the enormous market opportunity as India’s EV landscape evolves rapidly toward a $132 billion market by 2030.
