Ola Electric’s market capitalization fell below $5 billion for the first time since its listing in August. As of October 7, the Bengaluru-based electric two-wheeler manufacturer’s market cap on the Bombay Stock Exchange (BSE) stood at $4.7 billion. After debuting with an issue price of Rs 76, the company had initially seen its market capitalization exceed $7 billion.
Ola has been dealing with concerns from customers about hardware, software, and after-sales service, all of which analysts believe have led to the company’s scooter sales decline.
On Sunday, CEO Bhavish Aggarwal responded sharply to a comment by comedian Kunal Kamra on platform X, concerning service issues with Ola’s e-scooters.
In September, Ola Electric’s market share in India’s domestic electric two-wheeler segment fell to 27.9%, according to data from the government portal Vahan. Ather Energy, TVS Motor, and Bajaj Auto were among the competitors that recorded market shares of 14.8%, 20.2%, and 21.4% over the same time period, respectively.
To address after-sales concerns, Aggarwal previously announced plans to double the company’s service centers to 1,000 by December under its ‘Hyperservice’ campaign.
At 1:11 pm, Ola Electric’s shares were trading at Rs 90.49 on the BSE, down from the previous close of Rs 99.05, marking a drop of over 42% from its listing high of Rs 157.5.