In the electric two-wheeler (e-2W) sector, TVS Motor Co. Ltd. is consistently closing the retail market share disparity with Ola Electric Technologies Pvt. Ltd. 

According to data from Vahan vehicle registration, the latter now retains the top position with a market share of 24.8% in March, followed by TVS’ 19.5%.

The market share of Ola has decreased for the second time in succession. According to Kumar Rakesh, an analyst at BNP Paribas Securities India, Ampere Vehicles saw the most volume share growth in March, while Ola experienced the largest loss. 

According to Rakesh in a report on April 10, “This is most likely the cause of Ola’s price reduction.” After FY23, Ola reduced the cost of the S1 Pro electric scooter by INR 5,000. This, however, is only valid through April 16.

The market share of TVS, on the other hand, increased in March for the sixth time in succession. Its electric scooter, iQube, keeps acquiring popularity. iQube made up 5% of TVS’ total two-wheeler wholesale volume in the March quarter (Q4FY23), up from 3.5% in the previous quarter.

“This is a sign of consumer confidence in the incumbent brands as the electric vehicle customer looks for better quality and reliability. There is a possibility of TVS overtaking Ola in terms of market share in the medium term provided the ongoing trajectory sustains,” Varun Baxi, an analyst at Antique Stock Broking, said.

The aggregate market share of electric two-wheelers was close to 6% in March, the greatest level since FY23. This suggests a successful start to FY24.

E-2W penetration increased to 4.5% in FY23, up roughly 260 basis points from the previous year. As businesses expand their current products and introduce new ones, there is still potential for improvement.

“We regard Ola S1 Air’s delivery, commencing in July, and Honda launching two electric two-wheeler models in FY24 as the next positive catalysts for e-2W sales and mix,” the BNP Paribas report said.

As soon as government subsidies cease, demand may suffer as a consequence of the escalating cost of living. Therefore, it’s essential to give attention to how the e-2W industry develops after this.

Bajaj Auto Ltd. and Hero MotoCorp Ltd., two other listed incumbents, presently don’t own a significant market share in e-2Ws. An essential catalyst for investors in the equities of these two firms would be an increase in traction. 

One factor that has aided investor emotions in the case of TVS is its growing presence in the e-2W market. The TVS stock is progressively drawing closer to its October 52-week high of INR 1176.90 per share.