Ola Electric's dominance will come under increasing challenge, Bajaj Auto says
₹5,500-crore initial public offering.“Some of the weaker players have already fallen off over the last year, last few months, and the larger players - the top five- six people - are contributing to 80% plus of the industry... So, in one sense the consolidation has happened," Rakesh Sharma, executive director, Bajaj Auto, said at a post-earnings press conference.He emphasized that as Baja Auto and other electric two-wheeler makers widen their distribution networks and expand their product portfolios, Ola Electric will feel the heat.
"The market leader will finally start to feel the challenge, right up very close to them. The heat is very close to them now," he added.Ola Electric leads the electric two-wheeler market, cornering 51% share, followed by TVS, which has a market share of 17.5%, Bajaj Auto 13%, and Ather 11%.The company on Tuesday announced its financial results for the first quarter ended 30 June, marginally beating estimates.
The company's consolidated net profit rose 18% year-on-year (y-o-y) to ₹1,941.79 crore. Its consolidated revenue increased 16% YoY to ₹11,932 crore, helped by record spares sales, and volume expansion across both domestic and export businesses.Standalone earnings before interest, tax, depreciation, and amortization (ebitda) stood at ₹2,415 crore, with a margin of 20.2%, driven by better realisation and cost reduction, which more than offset the drag from the growing electric two-wheeler business.Bloomberg analysts had estimated a revenue of ₹11,812 crore and an Ebitda of ₹2,363 crore with margins of 19%.The company maintained momentum in its domestic business with continued double-digit growth.
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