Ather & Ola Electric: A tale of two contrasting rides

In Mumbai, Hero MotoCorp has invested twice in Ather Energy within two months, at a stock price six times higher than when the company debuted in May 2025. This shows the bike manufacturer's confidence in Ather's potential. On the other hand, Ola Electric has had a different journey, with its shares currently trading at half the price from its August 2024 IPO. Previously backed by prominent investors like SoftBank and Temasek, these investors have either sold their stakes or reduced their holdings to approximately 1%.

Ather's sales have increased to around 29,000 units per month in the first five months of the current fiscal year, up from 18,400 units in the first half of fiscal 2026. In contrast, Ola Electric's sales have plummeted to about 13,800 units a month, down from a peak of 33,974 units in 2024. Industry experts attribute these divergent fates to factors such as product development, design, management strategy, and luck.

Deepesh Rathore, founder and head of research at Insight EV, believes that Ather's focus on product design and engineering has paid off, reflected in its rising revenue and market share. For Ather's CEO, Tarun Mehta, engaging consumers and building trust is crucial for product success. He attributes success partly to the shift to electric vehicles and the company's vision of upgrading the customer experience.

Ola Electric, however, has faced numerous challenges, including product delays, spare parts shortages, software failures, and poor communication. These issues have led to a sharp decline in Ola Electric's market share, plummeting to 7% in August from a 50% peak in 2023. While Ola's CEO, Bhavish Aggarwal, acknowledges the brand's setbacks, he notes a recent sales uptick, partially recovering the brand's value.