TVS Leads EV Two-Wheelers; Ather Overtakes Ola
A dynamic market reshuffle in India’s electric scooter industry with TVS leading sales, Ather climbing ahead of Ola, and Bajaj facing headwinds due to rare earth material shortages.
Introduction
India’s electric two-wheeler (E2W) market continues its rapid evolution in 2025, marked by notable shifts in market leadership and competitive positioning. TVS Motor Company firmly holds the top spot in electric scooter sales, while Ather Energy is quickly closing the gap with Ola Electric and even surpassing it in recent months. Meanwhile, Bajaj Auto is experiencing a notable decline, impacted by ongoing rare earth supply constraints that throttle production capacity. This article explores the latest sales trends, the factors driving these changes, and what lies ahead for India’s booming E2W segment.
TVS: Reigning Supreme in Electric Two-Wheelers
TVS Motor Company’s rise to dominance in the electric scooter segment has been nothing short of remarkable. With its popular iQube range, TVS secured a commanding market share of around 24% as of mid-2025. In June alone, TVS iQube sales hit approximately 25,274 units, representing an 80% year-over-year growth and a steady month-on-month increase.
The company’s strategy to slash prices aggressively by up to ₹26,000 while enhancing battery capacity has resonated well with consumers, particularly in tier 2 and tier 3 cities. TVS’ well-established service network and strong brand reputation in conventional two-wheelers have also contributed to consumer trust during the shift to electric vehicles.
Ather’s Rapid Ascent Past Ola Electric
Ather Energy has emerged as a key challenger in the market race. With the Rizta making up 60% of its sales, Ather’s strategic retail expansion and broader offerings are helping it close in on Ola Electric.
Despite previously trailing Ola, Ather now boasts higher monthly sales figures in some recent months, climbing to second or third positions depending on the period examined. The company’s focus on premium technology, connected scooters, and urban markets has helped it attract consumers looking for advanced features and a smart riding experience.
Ola Electric’s Struggles and Market Position
Formerly the frontrunner, Ola Electric has lost ground in 2025. Although it continues to post month-on-month sales growth, the company has faced a significant year-over-year decline of around 45%, with sales dipping below TVS and Ather levels in recent months.
Factors affecting Ola include logistical challenges, a shift in consumer preference towards more established brands, and increased competition from legacy OEMs transitioning into electrics. Ola is reportedly focusing on profitability and stabilizing production before its next growth phase.
Bajaj Auto’s Decline Amid Rare Earth Material Crunch
Bajaj Auto’s drop in electric two-wheeler sales is notable against the backdrop of its strong start in EVs with the Chetak scooter. The company registered a surge of over 150% year-over-year at one point but has recently slipped due to shortages in rare earth magnets critical for electric motor production.
These supply chain issues have limited Bajaj’s ability to scale up production, leading to a fall in market share. However, their solid legacy and product appeal keep Bajaj as a serious competitor in India’s evolving E2W market landscape.
Market Trends and Challenges
India’s electric two-wheeler market crossed the milestone of over 1 lakh retail units sold in June 2025 alone, signaling strong consumer adoption and robust growth rates around 30% year-on-year. The total market share of electric two-wheelers has climbed steadily, reaching over 6% of all two-wheeler sales.
That said, the industry faces key challenges such as the rare earth supply bottleneck affecting multiple OEMs, rising battery costs, and evolving government subsidy policies related to the FAME scheme. Market dynamics suggest that companies with strong manufacturing scale, supply chain control, and dealership networks stand the best chance of leading the long-term electric transition.
Looking Ahead: The Future of India’s Electric Two-Wheelers
The next half of 2025 and beyond looks promising but competitive. TVS and Bajaj currently lead the market, followed closely by Ather and Ola Electric jockeying for podium positions. New entrants like River Mobility and Simple Energy are poised to further shake up the rankings.
Electrification is no longer a niche but a core part of India’s two-wheeler industry future, expected to constitute an even larger share as battery costs decline, infrastructure improves, and consumer preferences shift further toward sustainable mobility.
Conclusion
India’s electric two-wheeler market is in a state of rapid transformation. TVS is riding a wave of consistent, strategic success to dominate the segment, while Ather’s surge past Ola Electric highlights the tech-savvy urban consumer base’s preference for quality and innovation. Bajaj faces short-term headwinds but remains an important legacy player transitioning into electrification.
The industry continues on a strong growth path despite material and supply chain challenges, underscoring the nationwide push for sustainable and accessible mobility. The competitive interplay among market leaders promises to accelerate innovation, expand consumer choice, and cement India’s position as one of the world’s largest electric two-wheeler markets.
The image added is for representation purposes only
