Ola Electric's sales decline 34%, complaints surge to 80,000/month
What's the story
Ola Electric, a prominent electric scooter manufacturer based in Bengaluru, is facing a challenging period marked by declining sales and escalating customer complaints.
The company has been inundated with approximately 80,000 grievances per month, primarily related to delayed service responses. As per reports, grievances can even reach as high as 6,000 to 7,000 per day.
These delays have extended repair wait times to between 30 and 45 days, leading to significant customer dissatisfaction.
Sales slump
Sales hit record low in August 2024
Ola Electric's S1 series witnessed its lowest monthly sales volumes in August 2024, with a significant drop of 34% from July to just 27,506 units.
This decline also impacted the company's market share in the electric two-wheeler segment, which fell from an earlier 39% to a current low of 31%.
Meanwhile, competitors such as Bajaj Auto with its Chetak e-scooter (20% share) and TVS Motor Company with iQube (19% share), have reported increased demand.
Service challenges
Service issues plague Ola Electric
The company's service centers have been overwhelmed with complaints, leading to extended repair times.
One customer reported his e-scooter being stuck at a service center for two to three months due to a stand sensor issue that took three months to resolve.
Other common issues include battery failure, range reduction, and wheel jamming.
The Delhi service center on Najafgarh Road is reportedly understaffed with only four service personnel managing repairs against a required strength of 10 teams.
Company measures
Response to customer complaints
In response to the mounting complaints, Ola Electric has assembled a new team dedicated to improving after-sales service operations.
This team comprises employees from various departments including production and operations.
The company has sold 6,80,000 electric scooters since its inception and currently operates through 430 service stations across India.
Expansion strategy
Future plans despite challenges
Despite the current challenges, Ola Electric remains committed to its future plans.
The company recently announced its first electric motorcycles, the Roadster series, with deliveries set to begin from next year.
Additionally, it is venturing into the three-wheeler segment with a test mule of their electric auto rickshaw spied in Bengaluru.
This new model is expected to be named Ola Raahi and will be available as an electric auto rickshaw and cargo vehicle.