Ola Electric Stock Gains on Govt Push to Fast-Track EV Motorcycle Adoption

26 Aug 2025 , 10:08 AM

Shares of Ola Electric Mobility advanced nearly 5% on Monday, climbing to an intraday high of ₹49.40, after reports suggested that the government’s policy think tank Niti Aayog has called a high-level meeting with two-wheeler makers to draw up a roadmap for electric motorcycle adoption.

As per Hindu BusinessLine, the meeting will see participation from industry heavyweights including Hero MotoCorp, Bajaj Auto, TVS Motor, Ola Electric, Ather Energy and Revolt. The agenda is expected to center around policies and strategies to push electric motorcycles, a segment that represents about two-thirds of India’s two-wheeler market.

Government projections indicate that electric scooters could account for nearly 80% of sales by 2030, while electric motorcycles may reach only around 10%. This shortfall could drag total two-wheeler electrification to just 36%, well below official targets.

Officials are likely to discuss a mix of measures, including stepping up local production, cutting upfront purchase costs, building battery-swapping networks, and introducing innovative financing models to make electric motorcycles more affordable and practical for mass adoption.

The developments come at a time when Bhavish Aggarwal, founder of Ola Electric, has been vocal about his company’s growth plans. He recently reiterated Ola’s goal of capturing 25–30% of the domestic EV two-wheeler market, supported by vertical integration and new model launches. “Our mojo is still there,” Aggarwal said last week, adding that profitability would stay robust as volumes expand.

Market sentiment has also been lifted by speculation of a possible GST cut on entry-level two-wheelers, compact cars, and hybrid vehicles, which investors expect could further support sales momentum in the auto sector.

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