Bhavish Aggarwal, CEO and founder of Ola ElectricNew Delhi: Amid ongoing complaints of poor service for its scooters and inattentive management, Bhavish Aggarwal-led Ola Electric has charted out a strategic roadmap for the coming years.
The company plans to revamp its market position through three key elements: expanding its product portfolio, broadening its distribution network, and advancing technological innovation.
Ola Electric’s upcoming strategy
Ola Electric unveiled its future strategy during an investor meeting where Chairman and Managing Director Bhavish Aggarwal announced a venture into the three-wheeler segment. “The beauty is that it shares the same platform as our S1 in terms of electronics, battery architecture, and powertrain; only the mechanicals are different,” Aggarwal stated.
The company also announced that deliveries of its first electric bike, the Roadster, will begin in the next quarter, Q3 FY25.
As part of its strategy, the successor to its Gen 2 platform, Gen 3, will launch in January 2025. Aggarwal noted that it will enable “20% savings in BOM (bill of materials) costs over the next 12 months.”
Ola Electric's business plan also includes expanding its distribution and service network. “By March, we will have more than 3,000 retail points—2,000 of our own and a minimum of 1,000 network partners,” Aggarwal added.
Industry skepticism about Ola Electric's strategy
Some industry experts have expressed skepticism about Ola's approach. “Ola Electric’s strategy reveals a classic misstep: expanding product categories while core issues in reliability, customer satisfaction, and aftersales remain unresolved. Market leadership demands excellence in foundational offerings—Tesla’s pivot from Model 3 quality issues to global dominance is a case in point,” said Randheer Singh, CEO of ForeSee Advisors Pvt Ltd and former Director of Electric Mobility at NITI Aayog, to ETAuto.
Public scrutiny of Ola Electric’s quality
Ola Electric recently received a show-cause notice from the Central Consumer Protection Authority (CCPA) to address ongoing complaints. The CCPA has initiated an investigation into the company’s claim of resolving 99% of over 10,000 customer complaints regarding its electric scooters, according to The New Indian Express.
In response to the investigation, Ola Electric reported in its stock exchange filings that it had resolved 99.1% of the 10,644 complaints. “Out of 10,644 complaints that we received from the CCPA, 99.1% were resolved to the complete satisfaction of the customer as per Ola Electric’s robust redressal mechanism,” the company stated.
This declaration was an attempt to reassure customers and investors of Ola’s commitment, though it was met with public criticism. Stand-up comedian Kunal Kamra questioned Ola Electric’s after-sales service standards, sparking a public exchange on X (formerly Twitter) between him and Bhavish Aggarwal.
Looking ahead
Following these developments, Ola's stock saw a temporary decline, reflecting customer dissatisfaction. However, the company reported a consolidated market share of 34% in October 2024, with over 15,672 registrations by mid-month, according to the Vahan portal.
Currently, Ola Electric’s sales seem to have a strong momentum however, this performance may face challenges in the future, especially in the light of recurring customer complaints.
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