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Ola Electric, a prominent player in India's electric two-wheeler market, has experienced a surge in market share during the ongoing festive season. According to data from the government-owned vehicle registration platform Vahan, Ola sold 17,417 electric two-wheelers in October, capturing a 34.9% market share, a significant jump from the 28.7% share it held in the previous month. This growth is attributed to the popularity of its S1 scooter portfolio, which includes models like the S1 Pro and S1 Air, and the expansion of its service network. The company aims to maintain this momentum through the festive season, culminating in Diwali.
Despite its recent success, Ola Electric is not without its challenges. The company is facing regulatory scrutiny from the Automotive Research Association of India (ARAI) for failing to inform the agency about its recent pricing strategies for the S1 X 2 kWh model before launching its ‘BOSS’ sale. During this sale, the price for the S1 X 2 kWh model was as low as Rs 49,999, with additional benefits worth up to Rs 25,000 on the S1 portfolio. This move has raised concerns about transparency and compliance within the company.
Additionally, Ola Electric has been grappling with a growing number of customer complaints regarding after-sales service, software glitches, and hardware issues. These issues have led to a decline in sales and market share in recent months. The Central Consumer Protection Authority (CCPA) has issued a show-cause notice to Ola for alleged violations of consumer rights, misleading advertisements, and unfair trade practices. To address these concerns, CEO Bhavish Aggarwal announced plans to double the number of service centers to 1,000 by December under its Hyperservice campaign. Furthermore, the company aims to onboard 10,000 partners across sales and service by the end of 2025 through its Network Partner program.
The company's market capitalisation fell below the $5 billion mark for the first time since its listing after a public spat between Aggarwal and comedian Kunal Kamra. Kamra had expressed concerns about the quality of Ola scooters on X (formerly Twitter), sharing an image of several EV scooters parked at an Ola service center. These incidents highlight the challenges Ola Electric is facing in managing its image and customer perception. Despite these setbacks, Ola's financial performance shows signs of growth. In the June quarter, the company's consolidated net loss widened to Rs 347 crore, compared to a Rs 267 crore loss in the year-ago quarter. However, its operating revenue grew by 32.3% to Rs 1,644 crore, up from Rs 1,243 crore in the same period last year.
Moving forward, Ola Electric will need to navigate these challenges effectively to maintain its growth trajectory and solidify its position in the electric two-wheeler market. Addressing customer concerns, improving after-sales service, and ensuring regulatory compliance are key priorities for the company. While the festive season has provided a boost to Ola's sales, the company must focus on long-term sustainability and customer satisfaction to achieve sustained success in the competitive electric vehicle market.
Source: Ola Electric gains market share amid festive season sale