In FY2024, the Indian electric scooter market accounted for 5% of the total two-wheeler sales.

Ola Electric, India’s largest electric scooter maker, said on Monday it would cut the price of its cheapest model by 12.5% ​​as the loss-making company tries to boost sales after the government reduced subsidies.

Ora [OLAE.NS] The company has lowered the price of the cheapest version of the S1X model from 79,999 rupees to 69,999 rupees (approximately $839), said Anshul Khandelwal, the company’s head of marketing. Prices for other S1X models have been reduced by 5.6% to 9.1%.

The SoftBank Group-backed company launched the S1X scooter last August, just months after the government unexpectedly reduced incentives for buying electric scooters. However, some analysts said the price cut will hurt Ola’s interests.

“Ola is already selling the higher versions of the S1X series at a loss. Selling the base version at a lower price is not economically viable and it’s not something they can do forever,” said a Mumbai-based analyst on condition of anonymity. Because they have no right to speak to the media.

The Bengaluru-based company sold 326,443 electric scooters in FY2024. While it exceeded its 300,000-unit target, the company has lowered that expectation by two-thirds.

Despite the price cut, Ola’s cheapest electric scooter is still more expensive than the lowest-priced version of the TVS Motor and Hero MotoCorp-backed Ather, which costs over Rs 100,000.

However, it is priced lower than Honda’s Activa, India’s best-selling petrol motorcycle, which retails at Rs 78,000-82,000.

Ola, which started selling electric scooters in 2021, has a 35% market share, while TVS and Ather control 19% and 12% respectively, according to government data.

Industry data shows that the Indian electric scooter market accounted for 5% of total two-wheeler sales in fiscal 2024.

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