TVS Leads EV Scooter Market as Ola Electric Slips in July

India’s electric two-wheeler (E2W) market is going through a major change in 2026. Demand for electric scooters is still growing, but the companies leading the market are changing. Well-known automobile brands are now gaining more customers, while former market leader Ola Electric is facing a difficult period.

The industry has already crossed 11 lakh electric two-wheeler registrations in the first seven months of 2026. This puts the market on track to record another strong year. Although registrations in July were slightly lower than in June, they were much higher than the same month last year, showing that interest in electric vehicles remains strong.

TVS Motor Becomes the Top Electric Scooter Brand

TVS Motor has become the biggest player in India’s electric two-wheeler market. The company recorded more than 47,000 vehicle registrations in July 2026 and held around 27% to 28% of the market. This comes soon after TVS crossed the milestone of selling 10 lakh electric vehicles since entering the segment.

To meet growing demand, TVS is increasing its production capacity to more than 50,000 units every month. The company has also launched a new Battery-as-a-Service (BaaS) model for its Orbiter V1 electric scooter. Under this plan, buyers can purchase the scooter at a lower upfront price and pay a fixed monthly fee for the battery. Unlike some other subscription plans, TVS does not place any daily riding limit, making it a good option for regular users.

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Other traditional automobile companies are also performing well. Bajaj Auto remains in the second position with its Chetak electric scooter. Ather Energy continues to attract customers through its family-focused Rizta scooter, while Hero MotoCorp’s Vida range has recorded strong year-on-year growth.

Together, TVS Motor, Bajaj Auto, Ather Energy and Hero MotoCorp have contributed most of the industry’s growth in the first half of 2026. This shows that many buyers now prefer companies with trusted products and better sales and service networks.

Ola Electric Faces Financial and Service Problems

Ola Electric, once the biggest electric scooter company in India, has seen its market position weaken sharply. The company, which earlier held around 30% market share, has now dropped to fifth place with only around 6% to 7% share in July.

The company has also reported weaker financial results. Vehicle deliveries and revenue have fallen significantly, while losses remain high. As a result, Ola Electric’s share price has dropped sharply from its previous highs, and several market analysts have lowered their expectations for the company.

Customer service has become another major challenge. Thousands of users have complained about delayed repairs, late deliveries and poor after-sales support. These issues have affected customer confidence and also led to legal disputes in some cases.

The company has also gone through major internal changes. Several senior executives have left the organisation, the workforce has been reduced and questions have been raised about the use of its manufacturing facilities. At the same time, rival companies are expanding production and strengthening their dealership and service networks.

Lower Subsidies but Strong Future for Electric Vehicles

Government support for electric two-wheelers is now reducing under the PM E-DRIVE scheme. The subsidy amount available for each vehicle has been lowered, and the benefits are available only until the approved number of vehicles is reached. This may encourage some buyers to purchase electric scooters sooner.

Even with lower subsidies, electric scooters continue to be cheaper to own than petrol scooters over the long term. They have lower running costs and require less maintenance because they have fewer moving parts.

India is also expanding its charging network, with more than 29,000 public charging stations now available. However, charging infrastructure is still a challenge, especially outside large cities. Limited charging points, station downtime and range anxiety continue to slow faster adoption in many areas.

Battery replacement costs, resale value and after-sales service also remain important factors for buyers before purchasing an electric scooter.

Despite these challenges, the future of India’s electric two-wheeler market looks positive. Rising fuel prices, better technology, more product choices and increasing investment by established automobile companies are expected to support future growth. As competition becomes stronger, companies that offer reliable products, good customer service and affordable ownership options are likely to lead the next phase of India’s electric vehicle market.