Ola Electric sales crash 65 pc YoY in June, slips to 3rd spot in market share
Bhavish Aggarwal-led Ola Electric has suffered a sharp 65 per cent drop in sales in the month of June so far (till June 25), compared to the same month previous year, data from government’s VAHAN portal showed on Thursday.
As a result, it has slipped to the third spot in terms of overall market share, the data revealed.
Ola Electric’s declining sales are being attributed to a mix of rising costs and unresolved service-related issues, which have affected both demand and customer sentiment.
The company's market share, which was close to 50 per cent at its peak, has now dropped below 20 per cent.
Despite expanding its retail network and launching new models, the company’s recent performance has raised concerns.
The electric vehicle maker has nearly tripled its number of stores in an attempt to boost growth, but the results are yet to show.
The troubles aren’t limited to falling sales. Earlier in June, a major block deal involving 14.22 crore shares worth Rs 731 crore took place, with reports suggesting Hyundai Motor Company was the seller.
The average price for this transaction stood at Rs 51.40 per share. Financially too, Ola Electric has been under pressure.
For the fourth quarter of FY25, the company reported a net loss of Rs 870 crore -- more than double the Rs 416 crore loss in the same period previous year (Q4 FY24).
Revenue from operations dropped sharply by 62 per cent year-on-year (YoY) to Rs 611 crore due to lower vehicle deliveries.
In Q4 FY25, vehicle deliveries stood at 51,375 units, down from 1.15 lakh units in the same quarter previous year.
The auto segment’s EBITDA margin worsened to -78.6 per cent from -9.3 per cent a year ago, while the consolidated EBITDA margin fell further to -101.4 per cent, hurt by weak operating leverage and higher provisions.
There was some relief in the form of improved gross margins, which rose to 19.2 per cent.
For the full financial year FY25, Ola Electric delivered 3.59 lakh vehicles, slightly higher than 3.29 lakh in FY24.
Its adjusted revenue for the year stood at Rs 4,665 crore, with a consolidated EBITDA margin of -34.6 per cent.
