Ola Electric scooters is a significant and prominent player in India’s electric scooter market, but recent news and reports state that the company is facing some challenges. Customer complaints are increasing daily and causing a decline in sales. It offers advanced features such as app-based controls and high-speed capabilities. Strong branding, innovative products and aggressive pricing make Ola Electric scooters a large customer and a rapidly rising company.
 However, according to customer complaints, Ola Electric scooters struggles with quality control, software issues and safety concerns. Due to this, Ola scooters lost customer trust and brand reputation. Despite initial success, Ola scooters faces issues like reliability, supply chain disruption and lack of sufficient service infrastructure. Let’s discuss the problems the Ola scooters face and the current state of Ola Electric’s products. Shares of Ola scooters Mobility dropped nearly 4 per cent in intraday trading on Tuesday, October 29, sinking to a new low of 74.82 rupees and dipping below its issue price of 76 rupees for the first time since listing.
Market Performance
Ola Electric’s sales and market share have declined rapidly in recent months. Ola scooters held over 50% market share of the Indian e-scooter market at its peak time, but as of recent reports, this market share is concise and only remains 27% of the market share. During its starting period, Ola scooters was the only famous brand in the Indian E-scooter market, but today, Energy, TVS, Bajaj and many other companies are expanding their business.
Sales decline and increasing competitors are significant factors which cause a decrease in Ola’s dominance. The sales number of Ola Electric scooty declined because of production issues, delayed delivery times and customer trust in quality and safety. The market share declines for five straight months to 27% in September from over 50% in April. Over the last year, Bajaj has boosted the dealership count for its Chetak e-scooters from 100 to 500 as of June.
But Ola’s dealership count rose from 750 to 800, which is very low compared to Bajaj Auto. Rivals like TVS Motor and Bajaj Auto have captured a few per cent of Ola’s market. They capitalized on Ola Electric’s recent drawbacks, employing strategies that build reliability, brand trust and robust battery management among the customers.
 Ola lies on a direct-to-consumer model, but TVS and Bajaj dealership network offer easy access to maintenance and support. TVS and Bajaj partnered with financial institutions and provide more flexible financial options for middle-income buyers. TVS and Bajaj Auto have quickly gained market share in the Indian E-scooter sector.
Customer complaints and Service issues
Some interviews with Ola Scooters owners have revealed that the service experience is short of a nightmare. The service center takes too much time to repair. One of the customers shared his knowledge and said that his scooter was taken for repair after a minor accident, and it took 28 days to return it. This massive delay is not unacceptable for any customer. Ola Electric’s communication channels are insufficient and lacking.
Their employees hold customers’ calls for over 20 minutes, which is very irritating, and below-average companies do. Customers wait for 10 to 15 minutes to talk with their representatives. Many Ola owners also said that representatives put them on hold to consult someone and extend the process for minor inquiries. Customers are also frustrated with Ola’s ineffective roadside assistance and lack of software updates.
Software Engineer Ankit Pareek faced a troubling experience with Ola Electric when his scooter’s mirror assembly and front brake broke. The service centre failed to provide the necessary parts, leaving his wife stranded on a busy highway, creating a safety risk. Despite an emergency complaint, Ola Electric did not respond for over 24 hours.
Senior QA Engineer Jaydeep Maradiya at Silver Consumer Electricals Pvt. Ltd. voiced dissatisfaction with the poor service response from Ola S1 after 19,000 km. Despite an Ola Care+ subscription, I faced a 10-12 day wait time with no clear resolution timeline, and the service centre location moved 250 km away. I criticised customer service quality and overall negative experience.
Technical Problems
Ola’s front fork design is not suited to Indian conditions. The Ola S1 Pro is a European scooter brought to India without much design research and modification. It is based on Dutch EV maker Etergo’s Appscooter. The S1 model is made for smooth roads, but Indian roads are not. Ola Electrics works with world-class tire-1 suppliers to manufacture various components for the scooter. One of the suppliers is AlaphaCraft.
One of the reasons for the fork unit issue is that Ola Electric is going for a market rush. Ola scooters was unwilling to wait to thoroughly test the suppliers’ components. Some of the suppliers refuse to work with Ola. The faulty front fork design has less necessary strength and durability to handle regular wear and tear on Indian roads. Some Ola scooters faced sudden front-fork fractures, which led to accidents and injuries. A broken front fork causes disbalance or destabilises the front wheel, resulting in severe accidents.
Some riders also reported that the front fork snapped without warning. The frequent reports and news of front fork failure have led to customer concerns and demands for recalls. After that considerable chaos, Ola scooters announced a voluntary upgrade program. This first fork design issue negatively impacted Ola Electric’s reputation. Customers raised concerns about Ola’s quality control process and testing standards.
Ola Electric’s response to the technical issues was prolonged to acknowledge the problem publicly. The Ola scooters issues an immediate statement to reassure customers. It creates frustration and distrust among the affected customers.
 The company’s voluntary upgrade program without total recall makes customers unhappy and unsure. The company handling these issues has raised about its reliability and future purchase. Voluntary upgrade program instead of a total recall, Ola may save some costs but lose customers’ reliability, trust and brand reputation.
Financial Implications
Despite success in India’s e-scooter market, Ola Electric faces a financial crisis. Ola Electric’s ambitious expansion plan required high operational and manufacturing costs. The company rely on government subsidies under the FAME scheme leads to a lower profit margin. Ola scooters impose aggressive discounts and marketing strategies have strained their profitability. Ola’s business model is direct to consumer sales model.
This model offers benefits, leading to high initial logistics and distribution costs. Later, the quality control issues and warranty costs impacted its finances. It requires more capital for spending on customer service and repairs. Additionally, Ola Electric faces financial challenges due to a lack of revenue diversification and fierce competition in the e-scooter industry. The company is under pressure from cash flow issues and investor demands for returns, placing it in a difficult situation.
To achieve long-term financial stability, Ola scooters must tackle quality control problems, lower manufacturing costs, diversify its revenue sources, and adapt to subsidy shifts. High sales figures may not suffice for sustainable profitability in such a competitive landscape without these changes. Consequently, Ola scooters must implement strategic adjustments to navigate these financial obstacles and strengthen its market position.
Future aspects
To regain its market position, Ola scooters must enhance its service infrastructure, improve product quality, and engage with customers. These changes are crucial for restoring consumer trust and competing in India’s growing electric vehicle market,   fueled by government support and rising interest in sustainable transport options.
FAQ
Is Ola Electric facing challenges in India’s electric scooter market?
Yes, Ola Electric is currently facing several challenges, including quality control issues, software problems, and safety concerns.
What are the main reasons for the decline in Ola Electric’s market share?
The decline in market share is attributed to factors like quality control issues, delayed deliveries, and a lack of robust service infrastructure.
How are competitors like TVS and Bajaj gaining market share?
TVS and Bajaj are gaining market share by focusing on reliability, after-sales service, and a strong dealership network.
What are the common customer complaints about Ola Electric scooters?
Customers have complained about poor service quality, long repair times, and unresponsive customer support.
What are the major technical issues faced by Ola Electric scooters?
One of the major technical issues is the faulty front fork design, which has led to accidents and safety concerns.
How has Ola Electric responded to these technical issues?
Ola Electric has initiated a voluntary upgrade program to address the front fork issue, but this has not fully alleviated customer concerns.
What are the financial challenges faced by Ola Electric?
Ola Electric faces financial challenges due to high costs, reliance on subsidies, and a lack of revenue diversification.
What steps can Ola Electric take to regain its market position?
To regain its market position, Ola Electric must improve product quality, strengthen its service infrastructure, and focus on customer satisfaction.
Is Ola Electric’s direct-to-consumer sales model a disadvantage?
While the direct-to-consumer model offers certain benefits, it can also lead to higher logistics and distribution costs.
What is the future outlook for Ola Electric?
To secure its future, Ola Electric must address quality control issues, improve customer service, and diversify its revenue streams.
