Ola Electric Loss declines, Says Most Service Issues ‘Minor’

Ola Electric, one of the big electric two-wheeler companies, has had less losses in the last quarter. The company said that recent customer complaints regarding service were due to ‘minor issues’. Ola Electric’s consolidated loss declined to approximately Rs 4.95 billion in the July-September quarter. In the same period last year, this loss was about Rs 5.24 billion.

In the last quarter, the company’s revenue increased by more than 39 percent to about Rs 12.14 billion. This has been helped by the increase in sales of electric scooters priced below Rs 1 lakh. between July and September Ola Electric has delivered 98,619 units of electric scooters. Bhavish Aggarwal, founder of the company, said, “Not all service requests are complaints or product issues. Many of these are for routine maintenance. There were some challenges in our capacity in terms of service in the last quarter. Our sales have grown faster than the expansion of our service network.”

Ola Electric has sold more than 50,000 units in October. However, this is the company’s wholesales. According to vehicle portal data, the company’s retail sales last month were 41,605 units. The company has maintained its first position in this market with more than 30 percent market share. Its sales have increased by more than 100 percent compared to September.

For the last few months, Ola Electric has been facing customer resentment due to poor service. However, the company has said that it has resolved more than 99 percent of the complaints filed with the Central Consumer Protection Authority (CCPA). Recently, Ola Electric had told the stock exchange in a filing, “The company has provided necessary information and clarifications on the show cause notice issued by the Central Consumer Protection Authority.” The company had said that out of about 10,644 complaints filed by customers with CCPA, it has resolved 99.1 percent of the complaints. Along with issuing a show cause notice to Ola Electric, the CCPA had also directed the Automotive Research Association of India (ARAI) to audit the matter.