Ola Electric, once a trailblazer in India’s electric scooter market, is facing a steep uphill battle to regain consumer confidence. After a high-profile spat between CEO Bhavish Aggarwal and comedian Kunal Kamra over repair delays, Ola’s stock took a hit, dropping 9% almost overnight. This public backlash shed light on deep-rooted service issues, with customers experiencing prolonged wait times for repairs and battling a host of problems, from battery failures to faulty software.
Since you care so much @kunalkamra88, come and help us out! I’ll even pay more than you earned for this paid tweet or from your failed comedy career.
— Bhavish Aggarwal (@bhash) October 6, 2024
Or else sit quiet and let us focus on fixing the issues for the real customers. We’re expanding service network fast and backlogs… https://t.co/ZQ4nmqjx5q
Reports suggest that Ola’s service centres are drowning in complaints, handling an overwhelming 80,000 cases each month. Customers, including those with premium service plans, are left frustrated, with some taking drastic actions, such as protesting outside showrooms. The Central Consumer Protection Authority (CCPA) has now stepped in, slapping Ola Electric with a show-cause notice for misleading ads and unfair practices.
Ola’s rapid expansion strategy, which once seemed a formula for success, appears to have backfired. The company’s market share has nosedived from 50% to just 27%, and its monthly sales have halved. Competitors like Bajaj Auto and TVS, with their steady growth and robust service networks, have begun to edge out the startup, capturing nearly 40% of the market.
To bounce back, Ola Electric must rethink its approach. With mounting pressure from both competitors and consumers, the EV giant needs to focus on improving after-sales service, delivering on promises, and scaling production responsibly. As the electric vehicle market in India heats up, Ola’s road to recovery might just be its toughest challenge yet.
