Electric Two-Wheeler Sales Decline in July FY26; Ola Sees Sharp Drop, Ather Gains Ground

India’s electric two-wheeler (E2W) market witnessed its first monthly sales dip of FY26 in July, falling over 4% to 102,871 units compared to 107,654 units in July last fiscal year, according to Vahan data. This marks a reversal from the robust 31% year-on-year growth recorded during the first quarter of FY26.

TVS Motor and Bajaj Auto retained their leading positions with July sales of over 22,000 and 19,650 units respectively. Ola Electric slipped to third, selling 17,848 units, amidst what analysts describe as a crisis of customer confidence. Ather Energy, meanwhile, showed strong growth, clocking 16,231 units—boosting its market share to 15.77% from 9.49% a year ago.

The decline in overall sales, particularly Ola's, is attributed to both supply and demand-side pressures. Anurag Singh of Primus Partners pointed to a rare earth magnet shortage affecting production, coupled with waning consumer interest and limited subsidies affecting demand. This shift highlights evolving market dynamics in India’s E2W segment, where legacy players and agile startups continue to battle for market share amidst macroeconomic and supply chain challenges.