Ola Electric hires EY India to fix after-sales service chaos
Ola Electric, a major player in the electric two-wheeler segment, has hired EY India for a "service transformation." The move comes amid a spike in after-sales service issues and consumer complaints, which have dented sales volumes. EY India, a global consulting giant, is likely to offer detailed advice on several service-related aspects of Ola's business operations.
EY India's role in Ola Electric's service transformation
EY India's role in this collaboration will include a variety of service-related aspects, such as business process streamlining and spare parts inventory management. About 12 executives from EY have already joined Ola Electric for a three-month initial project. Their involvement may be extended depending on the results achieved during this period.
Ola Electric's service issues and consumer complaints
Ola Electric has been grappling with major after-sales service issues, resulting in a deluge of consumer complaints. Pictures of unserviced Ola Electric models at service centers and a shocking 80,000 monthly customer complaints have made their way to social media. The problems have also drawn the attention of consumer watchdogs and policymakers, increasing the urgency for effective solutions.
CCPA issues show-cause notice to Ola Electric
The Central Consumer Protection Authority (CCPA) has served a show-cause notice to Ola Electric. The company has been accused of violating consumer rights, misleading advertisements, and unfair trade practices over more than 10,000 unresolved after-sales service complaints. To tackle these issues, Ola Electric plans to expand its service centers from the existing 400 to 1,000 by year-end.
Ola Electric's internal struggles and market performance
Ola Electric has also been battling internal problems, including high attrition rates. Three service heads have left the company in the last two months. These problems have come along with a fall in sales and market share. According to data from a recent Elara Securities research report, the company's volumes have fallen nearly 25% to some 483,000 units in H1 of this fiscal year, from some 643,000 units a year ago.
Ola Electric's market share and recent performance
Ola Electric's market share also fell to 32.4% from 40.4% during the same period. However, there has been a recent spike in registrations due to heavy discounting by the company. As of October 14, Ola Electric has recorded over 15,672 registrations with a market share of 34%, Vahan data cited by the company in an exchange filing on Monday showed.
