Ola Electric, Ather Energy shares jump up to 11%; here's why

Shares of select electric two-wheeler makers such as Ola Electric Mobility Ltd and Ather Energy Ltd witnessed strong buying interest in Tuesday's trade. Ola Electric surged 11.21 per cent to hit a day high of Rs 44.95, while Ather Energy gained 5.57 per cent to touch a fresh 52-week high of Rs 1,142.80. Shares of Bajaj Auto Ltd and TVS Motor Company Ltd were also trading higher.

The rally followed the Delhi Cabinet's approval of the EV Policy 2026-2030, which comes with a budgetary outlay of Rs 15,000 crore. The new policy is expected to come into effect from July 1 and remain valid until March 31, 2030. It aims to accelerate the adoption of electric mobility through a phased transition.

Under the proposed policy, only electric auto-rickshaws will be registered in Delhi from January 2027, while registrations of new petrol and CNG-powered two-wheelers will cease from April 2028. The policy also provides incentives for electric vehicles and focuses on expanding the city's EV charging infrastructure.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "The Delhi Cabinet's approval of the EV Policy 2026-2030 is a positive for EV companies. Investors with a medium- to long-term view can add Ather," the expert said.

On Ola Electric, Bathini said the stock has witnessed a sharp rebound but added that it is suitable only for investors with a high-risk appetite. He advised buying Bajaj Auto and TVS Motor on dips.

Market veteran Arun Kejriwal also underscored the sharp rebound in Ola Electric's stock price. "The pure-play EV company has indicated that work on its new cell technology is at an advanced stage. Based on the management's commentary, Ola Electric could gain an edge as progress in cell development continues," he stated.

Ravi Singh, Chief Research Officer at Master Capital Services, said, "India's electric two-wheeler market is becoming highly competitive, but currently TVS Motor and Bajaj Auto look better positioned for long-term leadership. Both companies already have strong dealership networks, trusted brands, better service infrastructure and financial strength, which gives customers more confidence while shifting towards EVs. Bajaj's Chetak has witnessed strong growth recently, while TVS iQube continues to see healthy demand across multiple cities."

He added, "Ather Energy, on the other hand, still stands out for its technology, premium quality and strong product experience. Its new family scooter Rizta has helped the company expand beyond young urban buyers. However, compared to TVS and Bajaj, Ather still needs a larger scale and wider reach."

Singh further stated, "Ola Electric remains aggressive in expansion and battery manufacturing plans, but the company is still facing concerns around service quality, execution and profitability. Overall, traditional players currently appear more stable, while Ather remains the strongest innovation-driven EV brand."