Ola Electric, Ather Energy Close Gap in July 2025 Sales

India’s electric two-wheeler (E2W) market is witnessing a shift in competitive dynamics as Ola Electric’s market share dropped to 17.2 percent in July 2025, down from 19.9 percent in June, as per Vahan data.

Ather Energy closed the gap significantly, capturing a 16.5 percent market share with 13,187 units sold—just 526 units fewer than Ola Electric, compared to a margin of over 5,000 units in June. This narrowing gap comes amid Ola’s strategic pivot towards profitability, which appears to have dampened its sales momentum. The company has been realigning operations to focus on margins over volume, impacting its short-term market dominance. Meanwhile, Ather Energy’s consistent performance and aggressive retail push have helped it strengthen its position in a highly competitive segment.

Key Highlights

Ola’s market share dips to 17.2 percent in July from 19.9 percent in June
Ather Energy narrows gap, selling 13,187 units in July
China’s rare earth export curbs impact EV motor production

The broader E2W industry is also facing external headwinds. A key concern is China’s restrictions on rare earth magnet exports, which are vital for motor manufacturing. This move is affecting production lines across major Indian manufacturers, including Bajaj Auto and TVS Motor, potentially leading to delays or cost pressures in the months ahead.

Despite these challenges, demand for electric scooters remains robust due to rising fuel prices and increasing urban adoption. However, supply chain volatility and shifting market strategies are expected to shape the landscape in the near term.

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With competition intensifying, especially between Ola Electric and Ather Energy, the coming quarters will be crucial in determining leadership in India’s fast-evolving E2W space.