Ola Electric Shares Surge as Bhavish Aggarwal Unveils Bold EV Market Expansion Plans

Ola Electric Mobility Limited witnessed an 8.5% surge in its shares on Tuesday after founder and chairman Bhavish Aggarwal unveiled a determined roadmap to reclaim leadership in India’s electric two-wheeler (E2W) market.

The stock reached an intraday high of Rs 44.78 on the NSE, with trading volumes soaring to more than five times the two-week average.

The rise also coincided with reports that China may lift export restrictions on rare earth magnets, a key component in EV manufacturing.

If implemented, the move could ease global supply chain pressures and lower costs across the industry.

Despite this rebound, Ola Electric remains under significant pressure. The stock has fallen nearly 69% over the past year, 49% year-to-date, and still trades 72% below its August 2024 peak of Rs 157.53. At present, the company’s market capitalization stands at approximately Rs 19,200 crore.

Targeting Market Leadership

Aggarwal outlined Ola’s ambition to secure 25–30% of the two-wheeler EV market. The strategy focuses on vertical integration, homegrown technology, and product expansion.

Over the past year, the company’s market share has slipped from nearly 39% to 17.35% in July 2025, with monthly registrations dropping to 17,848 units from over 41,000 a year earlier.

Speaking on the company’s transition, Aggarwal said, “It’s been two quarters of transition with our Gen 2 scooters being phased out and Gen 3 models ramping up. Going into the festive season, volumes will start inching upwards. Ola’s mojo is still there.”

Ola plans to begin deliveries of its flagship S1 Pro Plus scooter and Roadster X Plus motorcycle during Navaratri.

Both will feature the indigenously developed 4680 Bharat cell, marking a milestone in cost reduction and profitability. “Everything inside our scooter is now homegrown,” Aggarwal stated.

Financial Performance and Market Outlook

For Q1 FY26, Ola Electric reported a consolidated net loss of Rs 428 crore, wider than Rs 347 crore in the same quarter last year. However, losses narrowed sequentially from Rs 870 crore in Q4 FY25, indicating tighter cost controls.

Aggarwal believes India’s EV market is in the “middle of the S-curve” of adoption, with a consolidation phase preceding the next stage of rapid growth.

“EV has gone from almost zero four years ago to about 20% in scooters in just four years. So it’s been a very aggressive ramp. And these new technologies have an S-curve of adoption. We’ve had one quick ramp, now industry is consolidating. The consumer base is also consolidating… I think there will be a one-year phase of consolidation after which there will be another steep ramp,” he said during an interview at Ola’s Gigafactory in Krishnagiri district.

He noted that cautious buyers are still evaluating EV technology, often relying on social proof from family and friends before switching.

“Consideration is very high and slowly more of the conservative customers are coming in,” Aggarwal added.

Competitive Landscape

The slowdown in the E2W market has affected all players. In July 2025, TVS Motor led with 22,225 registrations, capturing a 21.6% market share.

However, this marked a 12.73% decline from June’s 25,468 units. Bajaj Auto secured the second spot with 19,650 units and a 19.1% share, though sales dropped 15.16% month-on-month from June’s 23,161 units.

Ola Electric, once the dominant force, has been hit hardest. Its market share plunged from 38.83% in July 2024 to 17.35% in July 2025, with registrations nearly halving year-on-year.

At the company’s annual event, Sankalp, on August 15, Aggarwal emphasized that technological improvements will power the next growth phase.

He pointed to falling costs, longer ranges, and faster charging speeds as key drivers. “For the cautious consumer, all his core concerns are only improving every year. As they see new products, our Gen 3 and maybe next year our Gen 4 product, stabilization of technology will get more and more customers into the fold,” he said.

Gigafactory and AI Integration

Aggarwal also showcased the role of artificial intelligence at Ola Electric’s Gigafactory. Every battery cell undergoes X-ray imaging, followed by AI-based analysis to identify even minute deviations in electrode layering.

“A gigafactory cannot run without AI. It’s micron-level accuracy, and all the AI of this factory is inbuilt in-house,” Aggarwal explained.

The company sees this integration as vital to achieving precision, efficiency, and scalability in EV battery production.