In a notable shift within the two-wheeler electric vehicle (EV) market, shares of Bajaj Auto and TVS Motor Company Limited surged by up to 4 percent in morning trade on August 23, reflecting their increased market share in the segment. Meanwhile, Ola Electric, a newly listed company, experienced a dip in its market share and saw its stock price decline.
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Stock Performance Highlights
At 10 am, Bajaj Auto shares were trading nearly 3 percent higher at Rs 10,188 per share, making it the top gainer on the Nifty index. Similarly, TVS Motor Company stock rose over 3 percent to Rs 2,791. Conversely, Ola Electric Mobility’s stock was trading 2 percent lower at Rs 128.
According to Jefferies, Ola Electric initially witnessed a significant rise in its electric two-wheeler (E2W) market share during the first half of 2024. However, its market share has recently declined from 49 percent in the June quarter to 33 percent in August, although it still remains the market leader. On the other hand, Bajaj Auto and TVS Motor Company have strategically expanded their E2W offerings with more affordable models, resulting in a market share gain of 4-7 percentage points during the same period.
Expert Insights on EV Market Trends
Despite the introduction of lower-priced electric two-wheelers by various manufacturers, overall EV penetration in the two-wheeler segment has remained in the 4-7 percent range over the past two years. Jefferies anticipates that this penetration will gradually increase in the coming years as more consumers adopt electric vehicles.
TVS Motor Company’s Positive Outlook
The positive sentiment surrounding TVS Motor Company shares is further fueled by UBS’ bullish ‘Buy’ call on the stock following the launch of the all-new Jupiter 110 scooter. UBS highlighted that the newly launched Jupiter scooter represents a significant upgrade over its predecessor and competitors, while still being offered at a similar price point. The launch is expected to boost sales volume by an additional 15,000-20,000 units.
Ola Electric’s Recent Stock Movements
Meanwhile, Ola Electric shares have been on a decline for the past two days after the company’s share price doubled in value following its listing on August 9. This recent downturn in stock performance reflects the company’s ongoing challenges in maintaining its market share within the competitive two-wheeler EV market.
via Moneycontrol
