Ola’s marketing head Anshul Khandelwal said that Ola has reduced the price of the cheapest variant of its Ola S1X model from Rs 79,999 to Rs 69,999. Other S1X variants saw price cuts ranging between 5.6 percent and 9.1 percent. The company had launched Ola S1X scooter in August last year, a few months after which the government took a step and reduced the subsidy for purchasing e-scooters. However, some analysts say that the price cut will hurt Ola.
A Mumbai-based analyst, speaking on condition of anonymity, said, “Ola is already selling its higher variants of the Ola S1X range at a loss. It is not financially feasible to sell the base variant at a lower price and it is not Which they can do forever.”
The Bengaluru based company sold 3,26,443 e-scooters in FY 2024. Although it surpassed its target of 3 lakh, it had missed that estimate by two-thirds. Despite the price cut, Ola’s cheapest e-scooter is still priced lower than the lowest-priced variants of TVS Motors and Ather, which cost more than Rs 1 lakh.
However, it is priced lower than India’s best-selling petrol scooter Honda Activa, which is priced at Rs 78,000-82,000. According to government data, Ola, which started selling e-scooters in 2021, has 35 percent market share, while TVS has 19 percent market share and Ather 12 percent market share.