Ather Energy Jumps To No. 2 Spot In India’s Electric Two-Wheeler Market

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Ather Energy Gains Momentum in August 2025

Ather Energy has surged to the second position in India’s electric two-wheeler market, capturing 17% market share in the first 21 days of August 2025, according to data from the VAHAN portal. This marks a significant shift in the industry, as Ather overtook Ola Electric to claim the No. 2 position for the first time.

Market leader TVS Motor continues to hold the top spot with 25% market share, while Ola Electric slipped to third place with 16% share. The total market volume remains steady at around 1 lakh monthly sales, showing resilience and growth despite rising competition.

Growth Beyond South India

Ather’s expansion beyond its stronghold in South India has been a key growth driver. The company’s new Rizta model has gained traction in markets like Maharashtra and Gujarat. Currently, Ather operates 446 retail outlets across the country and has announced plans to grow this network to 700 stores by the end of FY26.

Competitor Performance

Hero MotoCorp entered the top five for the first time after the launch of its Vida VX2 electric scooter, priced at Rs. 82,000. With the innovative Battery-as-a-Service subscription option, the effective entry price is reduced to just Rs. 57,000.
Bajaj Auto slipped to fifth position, posting 12% market share, down sharply from the earlier 20%.

Ola Electric Under Pressure

Ola Electric Mobility Ltd, once a dominant player, has come under pressure after losing ground to Ather Energy. VAHAN data shows Ola registered 9,522 vehicles in August (as of August 20), compared to Ather’s 10,248 registrations. This caused investor concern, leading to a sharp 7% drop in Ola’s share price.

The stock decline followed a two-day rally that had earlier lifted shares nearly 30% to a three-month high. Despite this volatility, Ola’s stock remains down 43% in 2025 and has lost 65% value over the past year.

Financial and Policy Headwinds

Ola Electric’s recent quarterly results added to investor concerns. The company reported a net loss of Rs 428 crore, widening by 23% year-on-year, while revenues fell by half to Rs 828 crore. On a positive note, the company expanded its gross margins to 26% and stated that its auto business is expected to turn EBITDA positive in Q2 FY26.

Analysts also caution that potential GST policy changes could impact the EV sector. The government is reportedly considering reducing GST on small cars from 28% to 18% by Diwali 2025, which would narrow the price difference between electric and petrol two-wheelers and slow down EV adoption.