TVS Motor vs Ola Electric: Who will win the EV two-wheeler race?

Riding on the success of its only e-scooter model, the iQube, TVS Motor has become the clear number two in the EV two-wheeler space.

TVS Motor is now growing faster than top player Ola Electric, with the legacy two-wheeler major clocking a 40% volume growth between April and November 2024.

Compared to TVS, Ola Electric’s electric two-wheeler volumes saw 17.5% growth during the same period.

On its way to the second spot, TVS has edged out Greaves Electric (formerly Ampere) and Okinawa, two other e-scooter players, with an early mover advantage.

While TVS Motor has the momentum, Ola Electric has the muscle too. Founder and CEO Bhavish Aggarwal is aiming to sell a million Ola e-scooters a year and become profitable (before accounting for interest, tax, depreciation, and amortisation) by 2025.

While TVS still has only one electric two-wheeler in the market, Ola has an enviable product line-up. But TVS is ramping up both its in-house production and via acquisitions.

In August this year, TVS iQube Electric recorded the highest sales of 23,887 units in August 2023, compared to sales of 4,418 units in August 2022. It aims to increase its sales outlets to 900 by next year.

In addition to raising iQube’s production to meet the demand, TVS soon plans to launch electric three-wheelers.

The legacy two-wheeler major has made a slew of investments in the rising e-mobility space with big-ticket acquisitions, which will help TVS launch more products, including in the premium motorcycle space.

As Ola Electric prepares to file its draft red herring prospectus (DRHP) for its IPO on December 20, the big question looms: can TVS Motor beat Ola Electric to become the top electric two-wheeler maker?

TVS Motor share price is up 82% in 2023, compared to Bajaj Auto’s 76% gain and Hero MotoCorp’s 42%. On the valuation front, TVS is expensive compared to its larger listed peers.