Ola Electric’s stock slide is coming against the backdrop of a brutal market-share reset in India’s EV two‑wheeler space and a string of perception hits—from slowing sales and service complaints to a high‑profile battery IP controversy.
Shares of Ola Electric Mobility Ltd continued the slide on Friday, falling 3.85% to a new record low of ₹34.73 before recovering slightly to ₹35.60. The stock has now dropped 25% in the past month and is down 58.72% so far in 2025
Where the EV two-wheeler market stands now
Recent VAHAN-based data show that legacy OEMs have decisively taken the lead in India’s e‑scooter market.
- September 2025: TVS Motor led with 21,052 units (21.9% share), followed by Bajaj Auto with 17,972 units (18.7%). Ather Energy sold 16,558 units (17.2%), overtaking Ola Electric for the first time. Ola slipped to fourth with 12,223 units (12.7%), less than half its market share a year earlier (27.3%). Hero’s Vida was close behind at 11,856 units (12.3%).
- November 2025: TVS again topped the charts with 30,309 units and ~26% share, ahead of Bajaj, while Ather held third; Hero Vida (~12,200 units) actually surpassed Ola (~8,400 units) for the month.
Multiple analyses now describe Bajaj, TVS and Ather as the “new kings” of India’s EV race, with Ola’s share down to roughly 11–13% versus more than a quarter earlier in the year. Ola is still a meaningful player but no longer the volume leader; the market has clearly moved into a consolidation phase where incumbents with strong ICE networks are scaling harder and faster.
Read this: Amid Market Share Loss, Ola Electric Board Approves Rs 1500 Crore Fundraise
The LG battery-tech controversy
Ola Electric’s troubles have been amplified by allegations in South Korean media that an ex‑LG Energy Solution researcher illegally transferred “core national technology” for advanced pouch‑type lithium‑ion cells to Ola Electric.
- Reports say the researcher joined Ola in late 2023 and is now under investigation by South Korea’s National Intelligence Service and police for leaking LG’s production processes and manufacturing know‑how.
- LG allegedly detected the breach in early 2025, reported it to authorities, and the individual was dismissed from Ola in October 2025; prosecutors are pursuing charges related to export of “national core technology.”
It has strongly denied any wrongdoing. In statements and blog posts, the company calls the accusations “baseless,” argues that its 4680‑format “Bharat Cell” with dry‑electrode cylindrical technology is very different from LG’s pouch cells, and suggests the timing is driven by “foreign rivals threatened by indigenous innovation.”
Even if Ola is ultimately cleared, the optics are damaging at a time when it is pitching itself as India’s flagship EV and cell‑manufacturing story. For investors, the episode adds regulatory and reputational overhang on top of already‑weak financials.
Why Ola electic’s stock is collapsing
Beyond the headline controversy, there are several structural reasons markets have turned against Ola Electric:
- Sharp sales slowdown and loss of leadership
Its VAHAN registrations have fallen by ~40–50% year‑on‑year in key months, even as TVS, Bajaj, Ather and Hero ramp up volumes and launch aggressively priced models with wide dealer networks. Once‑dominant Ola now ranks fourth or fifth in monthly charts, and analysts point to fading brand pull in mass segments. - Intense competition and pricing resets
Incumbent OEMs have used their balance sheets and vendor relationships to roll out broader portfolios, under‑₹1‑lakh city scooters, and heavy festive discounts, squeezing Ola on both price and features. As a result, Ola has had to recalibrate prices and incentives, pressuring margins while still losing share. - Weak financial profile and cut guidance
- It has reported continuous operating losses over several quarters and carries meaningful debt, with trackers flagging a “weak ability to service its debt.”
- In Q2 FY26, it’s net loss narrowed to about ₹418 crore, but management cut full‑year sales and revenue guidance due to softer demand—spooking markets that had been banking on hyper‑growth.
- Equity research notes that the stock has delivered -47% to -60% one‑year returns, badly underperforming indices and auto peers; delivery volumes and retail participation have also dropped sharply.
- After-sales and service issues
Multiple industry reports highlight customer complaints around service delays, parts availability and reliability, especially as Ola scaled direct‑to‑consumer with fewer physical touchpoints than legacy OEMs. In a category where buyers expect long‑term assurance, this has undermined trust and repeat purchases. - Sentiment damage from battery-IP probe
The LG controversy has reinforced a narrative risk: that Ola’s “indigenous tech” story might face legal and diplomatic headwinds. Even with formal denials, investors typically de‑rate stocks when there is potential for protracted litigation, cross‑border regulatory scrutiny, or disruptions to supplier relationships.
Put together, Ola Electric is being hit from three directions at once—slowing growth and loss of market share, unresolved profitability and balance‑sheet worries, and an unwelcome battery‑IP cloud.
In that context, the stock’s collapse to record lows and the view that it is now “only for high‑risk investors” reflect not just temporary sentiment but deeper questions about whether the company can reclaim leadership in an increasingly crowded EV2W market dominated by cash‑rich incumbents
