Ola Electric has engaged EY India for a "service transformation" initiative aimed at addressing after-sales challenges, customer grievances, and declining sales, according to a report by The Economic Times.
EY India will assist Ola Electric in enhancing its operations, improving spare parts management, and strengthening customer support in areas with limited service centres. Approximately a dozen EY executives are currently collaborating with Ola Electric on a three-month project, which may be extended if successful.
An insider stated, "EY is aiding Ola in refining business processes, ensuring spare parts availability, and expanding services in underserved regions." A significant issue has been the shortage of spare parts and service personnel. CEO Bhavish Aggarwal is reportedly heavily involved in the project amid growing customer dissatisfaction.
The urgency for service improvements has escalated as customer complaints have reportedly reached 80,000 per month, with images of scooters accumulating at service centres surfacing. Last week, the Central Consumer Protection Authority (CCPA) issued a show-cause notice to Ola Electric for alleged consumer rights violations and unresolved after-sales issues. Over 10,000 complaints remain pending.
Ola Electric plans to increase its service network from 400 to 1,000 centres by year-end. However, industry experts suggest that Ola should focus on enhancing the quality of its existing centres rather than merely expanding the number.
Ola Electric Mobility Limited recently addressed media reports about a 3% drop in its share value, attributed to concerns over discounts offered on its Ola S1 X 2KWh electric scooter. The company clarified that no official price change has been made, but a festive promotional campaign is currently offering limited-time discounts.
Clarification on discounts In a communication to the Bombay Stock Exchange (BSE), Ola Electric explained the discounts being offered during the festive season. All customers can avail a general discount of ₹5,000 on the Ola S1 X 2KWh scooter. Additionally, a select group of customers are eligible for a much larger discount of ₹25,000, but this applies to a limited inventory only.
Official price unchanged The scrutiny intensified after the Automotive Research Association of India (ARAI) inquired if the scooter was being sold at ₹49,999, following reports of the discounted price. Ola Electric responded to ARAI on 8th October 2024, confirming that the official price of the Ola S1 X 2KWh has not changed. The ₹25,000 discount was only offered on a few units, which led to the significant price drop for those specific sales.