Diwali Sale: Ola S1 Scooter Now Starts at Rs 49,999 Amidst Sales Decline and Customer Complaints
Diwali Sale: Ola S1 Scooter Now Starts at Rs 49,999 Amidst Sales Decline and Customer Complaints
As Ola Electric faces tough competition and market share losses, the company rolls out hefty discounts for the festive season.
In a bid to regain its footing in the competitive electric vehicle (EV) market, Ola Electric has slashed prices for its S1 range of scooters during the ‘Biggest Ola Season Sale’. The entry-level Ola S1 X EV scooter now starts at ₹49,999, down by ₹25,000 from its original price, with a ₹10,000 flat discount across the lineup. Additional benefits, including exchange bonuses, tech upgrades, and extended warranties, make this an attractive offer for buyers during the festive Diwali season.
This move comes as Ola faces a significant dip in its market share, which fell to 27.4% in September, the lowest in the past 16 months. Key markets like Maharashtra and Uttar Pradesh have seen notable drops, with Ola’s share in Maharashtra plummeting to 15.6%, putting the company in third place behind Bajaj Auto and TVS Motor. Uttar Pradesh, once a stronghold for Ola, experienced a sharp decline as well, with market share slipping to 33.9%, a 10.1 percentage point drop. On the upside, Ola managed to reclaim its top spot in Karnataka, overtaking Ather Energy.
Ola’s pricing strategy is likely influenced by the increased competition from legacy manufacturers like Bajaj Auto and TVS Motor, which are rapidly expanding their electric two-wheeler portfolios. Ola’s market leadership has been under threat in key states like Tamil Nadu and Kerala, where TVS Motor and Ather Energy have overtaken it.
To address customer dissatisfaction and declining sales, Ola Electric has also launched the #HyperService campaign, which aims to double its service centres to 1,000 by December 2024. This includes a push for AI-based proactive maintenance and diagnostics, which the company hopes will enhance the after-sales experience for customers. Poor after-sales service has been one of the major pain points for Ola Electric customers, driving some buyers away from the brand.
Despite the challenges, Ola continues to expand its product lineup and improve its service infrastructure. The S1 series, which includes six models, now spans a price range from ₹49,999 to ₹1,34,999, catering to a wide spectrum of EV buyers. Additionally, in August 2024, Ola Electric announced the Roadster motorcycle series, with prices starting at ₹74,999 and battery capacities ranging from 2.5 kWh to 16 kWh.
To incentivize sales further, Ola has introduced a Referral Program, allowing S1 owners to refer friends and earn ₹3,000, while new buyers receive a ₹2,000 discount. The company is also working on expanding its retail network, with plans to open 10,000 outlets by 2025 as part of its Network Partner Program.
While Ola Electric registered impressive sales earlier this year, with a peak of 40,814 units sold in July, sales have steadily declined, with only 26,928 units sold in August and 23,965 units in September. Ola hopes that its festive discounts and service improvements will reverse this trend.
