Ola Electric, India's leading electric scooter manufacturer, announced a 12.5% reduction in the price of its most affordable variant on Monday, aiming to stimulate sales following government subsidy cuts. The company's marketing chief, Anshul Khandelwal, revealed that Ola slashed the price of the base variant of its S1X model from 79,999 rupees to 69,999 rupees. Additionally, prices of other S1X variants saw reductions ranging from 5.6% to 9.1%.

The SoftBank Group-backed company introduced the S1X scooters last August, shortly after the government unexpectedly lowered incentives for e-scooter purchases. However, analysts express concerns about the sustainability of these price cuts for Ola. Despite surpassing its sales target with 326,443 e-scooters sold in fiscal 2024, Ola had initially reduced its estimate by two-thirds.

Despite the price adjustments, Ola's cheapest e-scooter remains priced higher than the lowest-priced variants offered by competitors like TVS Motor and Ather, which are priced above 100,000 rupees. Nevertheless, it comes at a lower cost than Honda's Activa, India's top-selling petrol scooter, which retails between 78,000 and 82,000 rupees.

Since entering the e-scooter market in 2021, Ola has captured a 35% market share, while competitors TVS and Ather hold 19% and 12% respectively, according to government data.