Ola Electric Mobility Ltd announced the opening of 3,200 new stores in a single day, as India’s largest e-scooter maker looks to expand its local footprint and address customer frustration over service lapses.
Bengaluru-based Ola Electric has increased the number of showrooms and service centers to 4,000, Ankush Agarwal, group head of financial services and retail auto business, said on Wednesday.
The company, led by the co-founder Bhavesh Agarwalis looking to push into smaller cities in India as well as strengthen its after-sales service. “Leveraging its direct-to-consumer (D2C) model, Ola is ensuring that EV ownership becomes a reality for every household,” the company said in an exchange filing last week.
Ola Electric’s single-day store launch blitz marks its efforts to restore its market share and reputation after a tumultuous year of blockbuster listings in August that followed regulatory scrutiny over consumer complaints and its chairman. And a heated argument ensued between the stand-ups. Comedian
Almost every Indian town, city and district will have an Ola Electric store and a service center, its chairman Bhavesh Agarwal said in a video posted on December 19 on X. The milestone was initially expected on December 20 but was later extended to December 25.
The massive rollout comes months after it was criticized for customer complaints related to the service and performance. According to local media reports, 80,000 such complaints per month overwhelmed its service centers.
Videos and photos of Ola scooters malfunctioning have been doing the rounds on social media since Agarwal got into a social media spat with an Indian comedian, who criticized the company’s flagship model.
A change of reputation
“Their service network is an area that the company is trying to focus on,” Ambit Capital Pvt. analyst Jinesh Gandhi told Bloomberg News.
India’s Ministry of Heavy Industries ordered an audit of the firm’s servicing hubs in October, Reuters reported, and the Central Consumer Protection Authority in October issued notices over alleged violations of consumer rights, misleading advertising and unfair trade practices. released
This has led to a loss of market share for the sector leader – it fell to 24.5% in November from 32.6% in the same month last year. Shares of Ola Electric are now trading around 40% lower than their peak in August after a strong listing.
The store expansion plans could help it increase its market share which is under pressure from rival automakers viz Bajaj Auto Limited. And TVS Motor Company.
Although Ola Electric launched e-scooters for gig workers in November that are fueling India’s fast-paced commerce economy, competition in one of the world’s largest two-wheeler markets is fierce.
India’s No. 2 two-wheeler manufacturer Honda Motorcycle & Scooter India Pvt Ltd has also launched an electric version of India’s best-selling scooter Activa.
Ambit’s Gandhi said the opening of the shops is also in preparation for the launch of the upcoming vehicles. “The biggest challenge they need to address is getting product quality right from day one of launch.”