Thu Sep 12 06:22:00 UTC 2024: ## Ola Electric Faces Market Share Loss, HSBC Maintains ‘Buy’ Rating Despite Concerns

**New Delhi, India:** Ola Electric, the recently listed electric scooter manufacturer, has seen its market share decline in recent months, raising concerns for investors. While HSBC, a leading brokerage firm, maintains a “buy” rating on the stock, it acknowledges a potential downside risk to its FY25/26 volume projections due to the market share losses.

Ola Electric’s total escooter registrations dropped 34% month-on-month in August, falling to 27,517 units. This decline comes after a strong performance in July with 41,712 units registered. HSBC attributes this slump to the emergence of low-cost variants from competitors, particularly TVS and Bajaj.

TVS’ market share in the electric-two wheeler market has surged from 15% to 19% in the same period, while Bajaj’s has jumped from 11% to 18%. TVS Motor has been seeing robust growth, with EV registrations climbing 39% month-on-month to 19,471 units in July.

Despite the recent dip, HSBC remains optimistic about Ola Electric’s long-term prospects. The brokerage firm believes the company can recover and has maintained its “buy” rating with a price target of INR 140, representing a 24% potential upside.

Ola Electric’s stock has experienced significant volatility since its market debut last month, experiencing periods of both gains and declines. The stock closed at INR 112.30 on September 8th, a decline of 0.62% from the previous close.

Read More