Why Ola Electric share price is falling

December 4, 2025

Indian markets are trading higher on December 4 after a shaky open. However, the positive impact was limited due to strong FII sales and the rupee hitting a record low.

Nevertheless, broader markets remained positive, even as global signals remained mixed. Although the market traded positively, Ola Electric Mobility (Ola Electric) stood out as a significant decliner.

Once seen as an ambitious startup in India’s electric revolution, Ola Electric Mobility is now attracting attention for all the wrong reasons as its share price takes a sharp downward turn.

The share price has fallen by 12% in just five trading sessions, raising concerns and making everyone wonder what is behind this decline.

Let’s look at the reasons and whether this downturn is likely to continue.

Sales crashes and service crises

Ola Electric Mobility has been going through a difficult period and is starting to show this in both the sales figures and the share price.

After a strong festive period in October, the company’s sales fell 50% in November to 8,254 registrations, compared to 16,000 in the previous month.

This sudden decline has pushed Ola from its long-standing top position to fifth place in the Indian electric two-wheeler market.

The overall EV market also cooled in November, but Ola’s decline was much steeper than the industry’s 21% decline.

Behind the scenes, Ola Electric has struggled to meet demand for after-sales service as its scooters flood the roads in 2023.

Customers have experienced long wait times, repair delays and inconsistent spare parts availability. To solve this, Ola has now launched a major service restart, deploying a 250-member rapid response team across India.

The company claims to have cleared the service backlog in Bengaluru and is now rolling out the same model nationwide.

In short, lower sales, piling up service issues and customer frustration, all of which are shaking investor confidence. Ola is now rushing to plug these cracks before they widen further in India’s fast-growing EV market.

What now?

Going forward, Ola aims to deliver around 100,000 units in the second half of FY26. The auto segment is expected to achieve a gross margin of 40% and an EBITDA of 5% in the fourth quarter of FY26.

In-house production of Bharat 4680 format cells started with 1.4 GWh going live in FY26 and scaled up to 5 GWh in FY27.

To this end, the company is investing Rs 10 billion in the mobile gigafactory capacity in FY26, with some investments flowing into FY27. The funds will be mobilized through a term loan facility from the SBI consortium.

Also, Ola will continue to invest in the battery segment to complete the 5.9 GWh Gigafactory, mainly funded by the State Bank of India.

The company also plans to start the next phase of capacity expansion to 20 GWh in the first half of FY27.

It plans to enter export markets in ASEAN, Africa, Latin America and parts of Europe in the coming years.

It is also launching India’s first indigenously manufactured ferrite motors, which do not rely on rare earth magnets, ensuring supply chain stability. This engine will be gradually installed in Ola’s vehicle from Q3 FY26 onwards.

In addition to vehicles, it is also exploring using its cells to build battery storage for homes and power grids.

Industry insiders believe that the upcoming announcement could mark Ola Electric’s entry into the Battery Energy Storage Systems (BESS) space, eyeing a slice of India’s growing storage pie, which is expected to reach Rs 2,700 billion by 2030.

In short, Ola Electric Mobility is moving forward with bold expansion, homegrown innovation and a clear path to sustainable, profitable growth.

How Ola Electric Mobility’s share price has performed recently

Over the past five trading sessions, shares of Ola Electric Mobility have fallen 12%, extending the one-month decline to 27%

Over the past year, the share price has fallen 63.2%.

The stock touched a 52-week high of Rs 102.5 on December 4, 2024 and a 52-week low of Rs 36.13 on December 4, 2025.

About Ola Electric Mobility

Ola Electric Mobility is a leading EV manufacturer in India, specializing in the vertical integration of technology and manufacturing for EVs and their components, including battery cells.

Operations are centered around the Ola Future factory, where the production of electric cars and crucial components such as batteries, motors and vehicle frames takes place. Ola’s R&D efforts span India, UK and US, with a focus on innovation in EV products and core components.

Ola is also developing an extensive EV hub in Tamil Nadu, including the Ola Future factory and the upcoming Ola Gigafactory. This hub is supported by Ola’s Bengaluru-based Battery Innovation Center (BIC), which is dedicated to advancing cell and battery technology.

For more details about the company, check out Ola Electric’s fact sheet and quarterly results on our website.

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Investors should evaluate the company’s fundamentals, corporate governance and stock valuations as key factors when conducting due diligence before making investment decisions.

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