Ola Electric Mobility Ltd. has made headlines with its ambitious expansion, announcing the opening of 3,200 new stores across India, boosting its total to 4,000 showrooms and service centers. This significant growth initiative aims to tackle previous customer service challenges and broaden the reach of electric vehicle (EV) ownership, particularly among the nation’s smaller towns and tehsils.
At a live-streamed event on December 25, 2024, Ankush Aggarwal, the group head of financial services and retail auto business at Ola Electric, highlighted the rapid pace of this expansion, signaling the company’s commitment to enhancing customer satisfaction. “We promised, and now we have delivered! Today marks a significant milestone in India’s EV Journey as we expand our network to every city, town, and taluk,” stated Bhavish Aggarwal, the chairman and managing director of Ola Electric.
The expansion initiative follows a challenging year for Ola Electric after its spectacular initial public offering (IPO) debut. Initially listed on August 6, 2024, the company's stock quickly soared amid high investor enthusiasm, but it was later marred by fluctuations stemming from consumer complaints about product quality and service inefficiencies. A mouthful of complaints overwhelmed Ola’s service centers earlier this year, with averages reaching 80,000 monthly, prompting scrutiny from the Ministry of Heavy Industries, which ordered an audit of the company’s service outlets.
Ola's transition to the direct-to-consumer (D2C) model aims to make EV ownership accessible for every household. This approach allows the company to directly engage with customers, ensuring they receive the support necessary for ensuring their satisfaction with the EV purchase experience.
Adding emphasis on their service improvements, Aggarwal noted, “Almost every Indian town, city and district would have an Ola Electric store and service center.” This strategic move is also aimed at restoring the company’s reputation after facing significant public backlash and media criticism.
With the rollout of new stores, Ola Electric is backing benefits to attract customers, including discounts up to INR 25,000 exclusively for end-of-year promotions on their electric scooter range, including the S1 X portfolio. Customers can even enjoy additional savings on credit card EMIs and MoveOS features, which promise to enrich the overall riding experience.
The company has also unveiled the Ola S1 Pro Sona model featuring 24-karat gold-plated elements, underscoring its commitment to innovation and premium offerings. This model showcases the immersive “Sona Mood” experience, enhancing user interaction through customized settings on the Ola app and upgrades to its MoveOS software.
The release of Ola’s Gig and S1 Z scooter series marks preparations for enhanced customer offerings, with competitive prices appealing to varied segments of the market. Starting prices range from INR 39,999 to INR 1,34,999 for the diverse lineup of scooters and motorcycles, catering to burgeoning demand across urban and semi-urban areas.
Analysts believe this store expansion is pivotal, with Jinesh Gandhi of Ambit Capital Pvt. saying, “Their service network is the area the company is trying to address.” The urgency of these efforts is fueled by the stiff competition Ola Electric faces from brands like Bajaj Auto and Honda Motorcycle as they speed up their electric vehicle production. With rivals rolling out their electric models, including the Activa electric version, the competitive stakes are higher than ever.
Ola Electric's future hinges on its ability to effectively manage product quality alongside the ambitious goals set with its network expansion. The recent addition of stores serves as both a remedy for past grievances and a foothold for future opportunities within the rapidly growing market for electric vehicles. The upcoming year will be telling, as Ola aims to regain and expand its market share amid fierce competition.
Ola Electric’s commitment to redefining the consumer experience, combined with strategic store placement and comprehensive service offerings, positions it uniquely to play a leading role as India transitions toward electric mobility.
