Ola Electric in India faces mounting challenges as attrition soars to 54% and market share drops sharply. Workforce reduction, product roadmap shifts, and competitive pressures weigh on its growth outlook for FY26.
Ola Electric Mobility India, a major player in the country’s electric two-wheeler segment, has reported a sharp rise in attrition to 54% in FY25, up from 44% the previous year, alongside a steep market share decline from 46% in June 2024 to 19% in June 2025.
According to the company’s latest annual report, its permanent workforce shrank by nearly 20%, from 4,011 employees at the end of FY24 to 3,231 in FY25. The drop was particularly steep in the product and technology development division, where headcount fell 16% from 907 engineers to 763. This reduction comes at a critical time, as research and development remain essential for competitiveness in India’s rapidly evolving EV market.
Ola’s R&D operations focus on innovations in vehicle engineering, battery systems, embedded software, and electronics. However, the company noted that its attrition rate appears higher than industry norms partly because of its direct retail model, which involves operating its own stores instead of relying on dealer networks.
Also Read: Board Meeting Alert: Ola Electric to Review Financials This Monday
From a financial standpoint, the company’s workforce contraction coincides with strategic recalibration, including the shelving of its electric car project in FY25. This led to an impairment loss of approximately USD 2.4 million, with the remaining USD 14.8 million in development expenditure redirected toward its three-wheeler EV initiative.
Market analysts note that the timing of these internal changes aligns with intensified competition in India’s EV space. Ola Electric’s market position has been eroded by aggressive pricing, expanded product portfolios, and stronger distribution networks from rivals. Despite introducing lower-priced models, such as the Ola S1 Z, the company struggled to sustain customer traction due to brand perception challenges and after-sales service concerns.
Looking ahead, Ola Electric projects flat to slightly negative sales growth in FY26, targeting 325,000–375,000 vehicle sales compared to nearly 360,000 in FY25. This would mark its slowest annual growth since its market debut in 2021. Analysts believe that reversing the dual challenge of talent loss and market erosion will require focused investments in product reliability, service quality, and talent retention strategies.
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