Ola Electric, which briefly ceded its position to rival Ather Energy earlier in the month, has reclaimed the second spot in electric two-wheeler (E2W) sales for August. The Bhavish Aggarwal-led firm sold 16,646 units in August, cornering a 17.42% market share, according to the latest Vahan data. Close competitor Ather Energy followed with 16,543 units and a 17.31% share.
Ather had momentarily edged past Ola during the month, powered by its growing retail presence and strong demand for its family scooter, the Ather Rizta.On a year-on-year basis, however, the picture looks starkly different. Ather reported a 50% jump in sales, while Ola’s volumes fell 40%. Ather’s market share rose from 12% last year to over 17%, while Ola slipped from 31%. Once commanding more than half of India’s E2W market, Ola has steadily ceded ground to legacy two-wheeler makers and tech-led rivals.
August also marked the first time since April that Ola regained the number two ranking. But this recovery owed less to Ola’s own performance and more to Bajaj Auto’s sharp decline. The Pune-based automaker, which typically held the second spot, saw its Chetak e-scooter sales plunge 37% year-on-year to 10,635 units, sliding to fifth place. Its market share dropped to 11% from 19% a year earlier.
Shifting landscape: Ola vs. Ather vs. Bajaj
The setback stemmed from a shortage of rare-earth magnets—key components for EV motors—that disrupted Bajaj’s production. The company had flagged the supply chain risk months earlier. Last month, MD Rajiv Bajaj warned of a “severe shortage” of heavy rare-earth magnets that could halt output in August.
Last week, the company said it resumed supplies of the Chetak from August 20 after resolving sourcing issues. “Demand for Chetak remains robust, supplies have normalised, and deliveries against bookings have commenced. We are scaling up production to meet rising demand while staying true to our standards of quality and customer delight,” said Eric Vas, president – Urbanite business unit, Bajaj Auto.
Rare-earth shortage rattles the industry
The rare-earth squeeze has rattled the broader E2W industry as well. Bajaj, Ather and TVS Motor have all flagged the risk of production cuts. TVS Motor, India’s largest E2W maker, admitted the industry is still navigating the disruption. “Almost every player has been impacted by that (rare earth shortage). There is no clear one way forward as of now,” said Gaurav Gupta, president – India 2W business, TVS Motor Company. While some OEMs are scouting alternative supply markets, others are experimenting with rare-earth-free motor technologies. “The industry is navigating the supply chain crisis on a day-to-day, week-to-week basis,” Gupta added.
Despite the challenges, TVS Motor maintained its lead. Its iQube sold 22,742 units in August, capturing a 24% market share versus 20% a year ago. Overall industry volumes rose to 95,544 units, up from 89,080 last year. Still, sales fell below the 100,000-mark for the first time since May, underlining the impact of supply disruptions.