Ola Electric Mobility Ltd. introduced opening of 3,200 new stores in a single day, as India’s largest e-scooter maker seeks to increase its native footprint and handle buyer frustration associated to shortcomings in service.
The Bengaluru-based Ola Electric has elevated the quantity of showrooms and repair facilities to 4,000, Ankush Aggarwal, group head of monetary companies and retail auto enterprise, mentioned at an excellent on Wednesday.
The firm, led by co-founder Bhavish Aggarwal, is trying to penetrate India’s small cities in addition to bolster its after-sales service. “By leveraging its direct-to-consumer (D2C) model, Ola is ensuring that EV ownership becomes a reality for every household,” the corporate mentioned in an trade submitting final week.
Ola Electric’s single-day retailer launch blitz marks its makes an attempt to revive its market share and repute after a tumultuous year marked by a blockbuster itemizing in August adopted by an onslaught of consumer complaints regulatory scrutiny and a heated spat between its chairman and a humorist.
Almost each Indian city, metropolis and district would have an Ola Electric retailer and a service middle, its Chairman Bhavish Aggarwal mentioned in a Dec. 19 video posted on X. The milestone was initially anticipated on Dec 20 however later pushed to Dec 25.
The huge rollout comes a pair of months after it bought slammed by service and performance-linked buyer complaints. A month-to-month runrate of 80,000 such complaints had been overwhelming its service facilities, in response to native media reviews.
Videos and pictures of malfunctioning Ola Scooters circulating on social media whereas Aggarwal had a social media altercation with an Indian comic, who criticized the corporate’s flagship mannequin.
Reputational Turnaround
“Their service network is an area the company is trying to address” because it scripts a reputational turnaround, Jinesh Gandhi, analyst at Ambit Capital Pvt., informed Bloomberg News.
India’s heavy trade ministry ordered an audit of the agency’s servicing hubs in October, Reuters reported, and the Central Consumer Protection Authority served a discover in October over alleged violation of buyer rights, deceptive adverts and unfair commerce practices.
This has led to market share loss for the sector chief — it dropped to 24.5% in November versus 32.6% in the identical month final year. Ola Electric shares at the moment are buying and selling about 40% decrease from their peak in August after the sturdy itemizing.
The retailer growth plans may assist carry its market share that’s underneath strain from rival automakers similar to Bajaj Auto Ltd. and TVS Motor Co.
Though Ola Electric in November launched e-scooters for gig employees who’re powering India’s fast commerce financial system, competitors is fierce in a single of the world’s largest two-wheeler markets.
India’s No. 2 two-wheeler maker Honda Motorcycle and Scooter India Pvt. has additionally launched the electrical model of India’s topselling scooter Activa.
The retailer openings are additionally in preparation of the upcoming automobile launches, Ambit’s Gandhi mentioned. “The bigger challenge they need to address is getting the product quality right from day one of the launch.”
