How India Fell in Love with Electric Scooters
Why Everyone's Buying Electric Scooters Now (And Why Ola Isn't the Only Game in Town Anymore)
Hi readers,
Welcome to another edition of The Valuation Story, where we share Valuation and finance-related storytelling insights.
Let me tell you the story happening in India in a few years.
Remember When There Was Only One Choice?
Two years ago, if you wanted to buy an electric scooter in India, you had one option: Ola Electric. They were everywhere. Every third person talking about "going electric" was buying an Ola.
But look what happened in just one year…
There is a twist
Ola Electric used to sell 34 out of 100 electric scooters. Today? They’ve gone down to 29.
Now you might think, “OH NO, PEOPLE STOPPED BUYING ELECTRIC SCOOTERS!”
Wrong. Dead wrong.
MORE people are buying electric scooters than ever before. We went from selling just 17k scooters in all of FY2018 to selling 12.09 Lakh scooters in FY 2025 Alone.
So, where did those 5 customers go if not to Ola?
The consumer got more options:
TVS said, “Hey, we can make an Electric scooter too,” and people listened
Bajaj jumped in with their models
And here's the kicker - dozens of smaller companies started making really good electric scooters
That ‘Others” category? It went from 4 people out of 100 to 21 people out of 100. Thats like going from having one ice cream flavor to having 20 flavors at your local shop.
Why This Happened-
Reason 1: The Government reduce the tax
They cut taxes from 12% to 5%. Your Rs. 1 Lakh scooter now costs Rs. 90K. Plus, they are building charging stations everywhere.
Reason 2: People Got Smarter
Early buyers thought "Electric scooter = Ola Electric" Now people think, "Which electric scooter is best for ME?"
Reason 3: The Scooters Got Better
Remember when people worried, "What if my scooter dies in the middle of the road?" Now these scooters can go 80-100 km on one charge. That's enough for most people's daily needs.
Reason 4: It's Cheaper
₹2 of electricity vs ₹100 of petrol for the same distance. You do the math.
What This Really Means
Think of it like this - Ola Electric was like the first mobile phone company. Everyone bought from them because they were the only option. But then Jio came, then Airtel improved, then Vi got better.
Did the first company fail? No. Did customers get better service and prices? Absolutely yes.
This isn't about Ola Electric losing. This is about YOU winning.
You now have choices. Real choices. Want a sporty look? There's a brand for that. Want maximum range? There's a brand for that. Want the cheapest option? There's a brand for that too.
Five years ago, if someone told you that over 10 lakh Indians would buy electric scooters in one year, you'd have laughed. Today, it's reality.
More brands. Better batteries. Cheaper prices. More charging stations.
And you know what? Ola Electric will probably get better too, because now they have to.
That's how markets work. Competition makes everyone better.
So, are you thinking of going electric? What's stopping you now?
Signing off
The Valuation Story