Ola Electric boosts service network by 30% after increased scrutiny on EV brand

Ola Electric has reportedly expanded its service capacity by over 30 per cent to enhance after-sales support across the country. This initiative addresses reports of backlogs and high demand that had strained the company’s service resources. This comes as CCPA, the consumer affairs department, is planning to probe Ola Electric's claims of having resolved of 99 per cent of the complaints registered with the department.  

Ola Electric, according to a report by PTI, has added more than 50 service centres nationwide. Additionally, the company has recruited over 500 technicians to bolster service support at both new and existing centres.

The report suggests that the company has partnered with global consultancy Ernst & Young to optimise its service processes, focusing on efficiency and customer experience enhancements.

An unnamed senior executive at Ola Electric, cited in the report, stated that the recent expansion has already helped clear around two-thirds of the existing service backlog, with the remainder expected to be resolved in the coming weeks.

This development follows increased public scrutiny of the company’s service quality, particularly after a social media interaction between Ola founder Bhavish Aggarwal and comedian Kunal Kamra.

HSBC Global Research recently maintained a ‘buy’ rating on Ola Electric’s shares, setting a target price of ₹110. The analysts noted significant improvements at Ola’s service centres since their last review, reporting a 20-30% reduction in backlog month-on-month.

Ola Electric’s founder and CMD, Bhavish Aggarwal, introduced the #Hyperservice campaign in September, promising a technology-driven, superior after-sales experience. As part of this initiative, Ola plans to expand its company-owned service network to 1,000 centres by December 2024.

Although Ola has not officially updated on the #Hyperservice progress, recent service expansions align with the campaign’s goals.

Data from the Vahan government portal shows that Ola Electric’s market share increased to over 30 per cent in October, up from 27 per cemt the previous month, highlighting its growing presence in India’s electric two-wheeler market.