Ola Electric disappoints, sales down to 42% in July

Ola Electric, which recalled 1,441 two-wheelers in April, is set to launch its first electric car on August 15 sold around 3,426 vehicles in July 2022, down 42 percent month-on-month on chip shortage and spill-over effects of inflationary pressures.

FADA's report said high inflationary pressure was a cause of major concern. "The two-wheeler retail (both electric and non-electric) run witnessed poor demand as rural India continues to underperform. This coupled with high inflation, erratic monsoon and high cost of ownership continue to keep bottom of the pyramid customers at bay," FADA's report said.

Hero Electric reported an increase in sales by 33 percent to 8,679 units, Okinawa Autotech 14.5 percent at 7,999, while Hero Motocorp-backed Ather Energy saw its sales tank 68.6 percent from June to 1,192 two-wheelers in July.

Even as the Russia-Ukraine war continues, deteriorating Taiwan-China ties are the latest flashpoint for the global economy. The threat of semiconductor shortage is once again looming, as chip-maker TSMC raises red flags that if war hits, Taiwanese chip manufacturers would be rendered inoperable, the report said.

Ola Electric had in June slipped to the fourth position in terms of electric vehicle registrations just months after reaching the top position, as per the government's Vahan dashboard.

As per Vahan, overall EV registration in July was around 77,485 units against 72,416 in June 2022. The Vahan dashboard does not capture data from Telangana, Madhya Pradesh, and Lakshadweep due to which the number of registered EVs in these states is not available.

This also comes at a time when growing incidences of EVs catching fire have caused safety concerns among existing customers as well as first-time buyers.

Ola Electric recalled around 1,441 electric two-wheelers in April this year.

The company is also planning to venture into electric cars and is set to launch the first product on August 15, Independence Day, this year.