Thu Oct 10 18:10:56 UTC 2024: ## Ola Electric Faces Customer Backlash, Stock Plunge Amid Service Woes

**Bengaluru, India** – Ola Electric, a prominent Indian electric vehicle manufacturer, is facing a severe backlash from customers over concerns regarding the reliability and performance of its scooters. The company’s stock has plummeted in response, with shares falling by as much as 9.1% on Monday, pushing its market cap below $4.75 billion for the first time since its IPO in August.

Customer complaints about Ola Electric’s scooters are reaching a fever pitch, with the company reportedly receiving over 80,000 complaints each month. According to HSBC analysts, who visited several Ola Electric service centers, the company’s service infrastructure has failed to keep pace with its rapid sales growth.

“Most service centers appeared overwhelmed by service requests and were struggling to provide adequate service quality,” the HSBC analysts noted. “Ola Electric did not invest sufficiently in servicing capacity to match the volumes sold over the past two years.”

The analysts further highlighted a shortage of skilled manpower and testing equipment, as well as a lack of experience in developing and maintaining service centers. Product issues, ranging from sensor and software problems in the hub motor to battery discharge during non-usage, have added to the frustration of customers.

These service woes have significantly impacted Ola Electric’s market share. The company held a commanding 49% market share in the quarter ended June, but this has plummeted to 27% by the end of September. Meanwhile, established automotive giants Bajaj and TVS are aggressively expanding their electric vehicle offerings, now controlling over 20% of the market each.

Ola Electric founder and CEO Bhavish Aggarwal has attempted to dismiss the criticism by mocking a comedian who raised concerns about customer problems, alleging that the comedian had failed in his career and accepted bribes to criticize the company.

However, the ongoing customer dissatisfaction and stock decline raise serious concerns about Ola Electric’s future. The company’s failure to address service issues and maintain its market position could have a significant impact on its long-term success in the competitive Indian electric vehicle market.

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