Ola Electric, India's leading electric scooter manufacturer, announced a 12.5% reduction in the price of its most affordable e-scooter variant on Monday.
This move comes as the company aims to stimulate sales following the government's decision to reduce subsidies for electric vehicles.
The price of the base variant of Ola's S1X model has been slashed to Rs 69,999 (approximately $839) from its previous price of Rs 79,999, according to Anshul Khandelwal, the company's marketing chief. Additionally, the prices of other S1X variants have been reduced by 5.6% to 9.1%.
Last August, Ola Electric launched the S1X scooters, which was shortly after the government's unexpected decision to cut incentives for purchasing e-scooters. Despite these price reductions aimed at increasing sales, some analysts are concerned about the financial implications for Ola.
"Ola is already selling its higher variants of the S1X range at a loss. Selling the base variant at a lower price is not feasible financially and this is not something they can do forever," commented a Mumbai-based analyst who preferred to remain anonymous due to not being authorized to speak to the media.
In the fiscal year 2024, the Bengaluru-based company sold 326,443 e-scooters, surpassing its revised target of 300,000 units, which had been reduced by two-thirds.
Even after the price cuts, Ola's most affordable e-scooter remains priced higher than the entry-level models offered by TVS Motor and Hero MotoCorp-backed Ather, which are priced above Rs 100,000. However, it is priced lower than Honda's Activa, India's top-selling petrol scooter, which retails between Rs 78,000 and 82,000.
According to government data, Ola holds a 35% market share in India's e-scooter market, while TVS and Ather control 19% and 12%, respectively. The e-scooter segment accounted for 5% of total two-wheeler sales in India during the fiscal year 2024, as per industry data.