I’ll be honest, when Ola Electric first burst onto the scene, I was rooting for them. They seemed to have nailed what so many electric vehicle companies miss: affordable electric mobility that didn’t feel like a compromise. The S1 wasn’t just another budget scooter trying to play dress-up. It looked sharp, had smart tech features, and offered serious bang for your buck.
And for a price-sensitive market like India, that’s a big deal. And from where I sit here in the Philippines, I was quietly hoping they’d expand our way too. We face similar buying habits, and something like the S1 could’ve done really well here.
But the latest headlines out of India tell a very different story. Ola Electric, once the golden child of the country’s EV movement, is facing a rough patch. Actually, it’s more of a full-blown crisis.
Beyond the launch events and ambitious promises, customers have been dealing with real-world issues. Suspension components that gave out, electrical glitches that stranded riders, and a service network that, frankly, wasn’t ready to scale this fast. Aftersales support became a sticking point, with some owners waiting weeks just to get basic problems fixed.
In fact, as we reported not too long ago, things escalated to the point where a frustrated customer set an entire Ola Electric dealership on fire. No exaggeration. That really happened.
And now, the financials reflect the chaos. Ola posted a net loss of 8.7 billion rupees (around 104 million US dollars) for the first three months of 2025—more than double the 4.2 billion rupees (roughly 50 million US dollars) it lost in the same period last year. Sales plummeted 55 percent compared to Q4 FY24. From 115,000 units down to just over 51,000. EBITDA losses widened too, from 2.7 billion rupees (about 32 million US dollars) last year to 6.6 billion rupees (nearly 79 million US dollars) this quarter.
This, by the way, is where I finally get to use my dusty Business Management degree. What we’re seeing is a painful combo of slowing demand, bloated cost structures, and overestimated growth forecasts.
The demand didn’t disappear overnight, though. It shifted. And that’s because the competition has caught up. Bajaj, TVS, Hero, and Ather have all leveled up. Their EVs might not be as flashy and affordable, but they’re backed by strong dealer networks, reliable service, and years of customer trust. Ola can’t claim that yet—not convincingly, anyway.
What really ups the stakes is the entry of Honda and Suzuki. We’ve talked about this before. These aren’t brands trying to prove themselves. They’re household names with deep pockets and serious plans. Honda already has EV-dedicated showrooms in India and is investing heavily in swappable battery infrastructure. Suzuki isn’t far behind either, with its Burgman Electric project already undergoing road tests.
So here’s Ola, a company that was once the biggest fish in a small pond. Now the pond is getting crowded, and the newcomers aren’t minnows—they’re sharks. That’s a tough environment for a startup to thrive in.
Still, it’s not over. Ola claims it led the Indian EV scooter market in FY25, delivering over 350,000 units. They’ve got new bikes in the pipeline too, including electric motorcycles. But building new products while firefighting service issues and investor pressure isn’t exactly a winning formula. Something’s got to give.
Where this story goes from here? Honestly, it’s anyone’s guess. Ola could find its footing, clean up its act, and keep its crown. Or it could go the way of other overhyped tech startups that flew too close to the sun.
Either way, I’m still watching. Still hopeful. Just not holding my breath anymore.
