Details

Ola Electric Mobility Ltd., India's leading e-scooter manufacturer, recently expanded its presence by opening 3,200 new stores in a single day, increasing its total number of showrooms and service centers to 4,000 nationwide.

This strategic move aims to enhance after-sales service and address customer concerns that have surfaced over the past year.

In recent months, Ola Electric has faced a surge in consumer complaints, particularly related to service and performance issues. Reports indicate that the company was handling approximately 80,000 complaints monthly, which strained its existing service infrastructure. 

Additionally, the Central Consumer Protection Authority issued a notice to Ola Electric over alleged violations of customer rights, misleading advertisements, and unfair trade practices. These challenges have contributed to a decline in the company's market share, dropping to 24.5% in November from 32.6% in the same month last year.

The rapid expansion of its retail and service network is part of Ola Electric's efforts to regain consumer trust and market position. By establishing a presence in nearly every town, city, and district across India, the company aims to make electric vehicle ownership more accessible and improve customer satisfaction. This expansion also prepares the company for upcoming vehicle launches, signaling its commitment to growth and innovation in the competitive electric vehicle market.

Despite these efforts, industry analysts suggest that Ola Electric must also focus on enhancing product quality from the outset to effectively rebuild its reputation and market share. The company's shares have experienced a significant decline, trading about 40% lower than their peak following a strong listing in August.

In summary, while Ola Electric's rapid expansion of its retail and service network demonstrates a proactive approach to addressing consumer complaints and market challenges, sustained improvements in product quality and customer service will be crucial for the company's long-term success in India's evolving electric vehicle landscape.