Ola Electric lays off 5% staff as EV sales stay below 10,000 units for 3rd consecutive month

Bhavish Aggarwal-led Ola Electric has laid off 5% of its workforce as part of an ongoing “structural transformation”. The layoffs are expected to affect 620 jobs as the electric vehicle maker had around 12,396 employees until last year.

“The company is doubling down on speed and discipline through increased automation across its frontend operations. As part of this ongoing structural transformation, approximately 5% of the workforce will be impacted,” the company said in a statement.

Ola Electric said it remains focused on delivering a stronger customer experience and building a leaner organisation positioned for long-term, profitable growth. The layoffs come as the EV maker has seen a consistent decline in market share over the past three months, with retail sales staying below the 10,000 units mark for the third consecutive month in January.

According to VAHAN data, Ola Electric recorded registrations of 7,221 units as of January 31, 2026. Rival Ather Energy witnessed EV registrations of 20,786 units during the same period, notching nearly three times more sales than Ola. Market leader TVS Motor Company sold 33,286 electric scooters in January. Bajaj Auto, the maker of the Chetak electric scooter, came in second with 24,211 EV registrations. Hero MotoCorp clocked 12,608 EV registrations in January.

As Ola Electric loses charge, rival Ather Energy is racing ahead. Ola’s sales decline and Ather’s rise in India’s electric two-wheeler race is a case study on two IITian founders choosing different paths to build their companies. While Aggarwal spread himself too thin by announcing ambitions to enter chipmaking, artificial intelligence, Cloud, cell manufacturing and battery energy storage systems, Mehta took a more focused and frugal approach. 

Ola’s attrition rate is also among the highest in the industry. In FY25, it witnessed an employee attrition rate of 54% compared with 44% in FY24. At the senior level, the company has seen high-profile exits. Its chief financial officer, Harish Abichandani, resigned with effect from January 19, 2026. The company’s chief technology and product officer and chief marketing officer quit last year. 

Some of these positions still remain vacant. Employee attrition rate at Ather Energy was 12.5% in FY25 as against 18.4% in FY24.