Legacy OEMs gain momentum as EV demand rebounds, while Ola struggles to arrest decline
India’s electric two-wheeler (E2W) market began 2026 on a stronger note. Registrations rose sharply in January, led by incumbents tightening their grip on volumes, even as Ola Electric slipped further down the leaderboard. Is the market decisively swinging back to legacy players?
E2W Market Sees January Revival
After a muted 2025, demand showed early signs of recovery.
- E2W registrations jumped 19.1% MoM to 1,16,707 units in January, from 97,989 in December.
- The uptick suggests improving consumer sentiment at the start of the calendar year.
However, the gains were unevenly distributed across manufacturers.
TVS Motor Tightens Its Grip
TVS Motor retained its pole position in India’s E2W market.
- January registrations stood at 33,296 units, up 32% MoM.
- Models like iQube and Orbiter drove volumes.
- TVS sold nearly 2.2 Lakh E2Ws in 2025, consistently leading the charts.
The company also reported its highest-ever quarterly EV sales in Q3 FY26, crossing 1 Lakh units, with E2W sales up 40% YoY. Management recently indicated that rare earth magnet supply issues—triggered by China’s export curbs—are largely resolved. Could this clear the runway for sustained growth?
Bajaj and Ather Build Momentum
Other legacy and growth-stage players followed suit.
- Bajaj Auto registered 24,211 units, marking a 27–28% MoM increase.
- EVs contributed 25% of Bajaj’s topline in Q3, aided by the refreshed Chetak lineup.
- Ather Energy sold 20,786 units, up 21% MoM.
- The company will announce its Q3 results on February 2.
Meanwhile, Hero MotoCorp posted 17% growth, with January registrations rising to 12,608 units.
Ola Electric Slips Below 10K for Third Straight Month
In contrast, Ola Electric’s decline continued.
- January registrations fell to 7,221 units, down 20% MoM from 9,027 in December.
- Once the category leader, Ola has now slipped to fifth place.
The Bhavish Aggarwal-led company has been grappling with regulatory scrutiny, operational disruptions, and product delays. While initiatives like HyperService—promising one-day issue resolution—now cover 80%+ service requests, reputational damage has proven harder to reverse.
Compounding the pressure, Ola Electric recently announced a 5% workforce reduction, its second round of layoffs in under a year.
A Market at an Inflection Point
Despite January’s rebound, the broader context remains sobering.
- E2W registrations in 2025 were largely flat at 12.80 Lakh units, compared to 11.44 Lakh in 2024.
- The January spike hints at recovery, but sustained growth will depend on reliability, service quality, and supply-chain stability.
Legacy OEMs appear better positioned on execution—raising a key question: is India’s E2W market entering a consolidation phase?
TL;DR
India’s E2W registrations rose 19% MoM in January, led by TVS, Bajaj, and Ather. TVS strengthened its lead with 33K units, while Ola Electric slipped further to 7,221 units, extending its monthly decline amid operational and reputational challenges.
AI Summary (Points)
- January E2W registrations rose to 1.17 Lakh units
- TVS Motor led with 33,296 registrations, up 32% MoM
- Bajaj and Ather also posted strong double-digit growth
- Ola Electric sales fell 20% MoM to 7,221 units
- Market recovery visible, but leadership is consolidating
