Electric vehicle manufacturer Ola experiences a net loss of ₹564 crore, attributed to service-related difficulties
In a recent development, Indian electric vehicle (EV) company, Ola Electric, has been facing issues with both product and service quality, leading to dissatisfied customers. As a result, the Central Consumer Protection Authority (CCPA) received a total of 10,644 complaints against the company.
The motorcycles built by Ola Electric are based on the company's new Gen3 platform, which is claimed to aid in the production of better and more reliable products. The Gen3 platform is also expected to reduce the cost of production and increase energy efficiency.
Despite the challenges, Ola Electric continues to be among the top three EV manufacturers with a 25.5% market share in Q3. The company's recent losses, however, are a cause for concern. Ola Electric reported a loss of ₹564 crore in the last quarter of 2021, with the net loss widening from ₹376 crore in the previous quarter. The CEO of Ola Electric during this period is Bhavish Aggarwal.
In an effort to address the issues raised by customers, Ola Electric has launched new electric motorcycles - the Roadster X and Roadster X+. The Roadster X+ will feature one of the biggest batteries from the company at 9.1 kWh, and will be the first motorcycle to feature Ola's indigenously built 4680 battery cells. The Roadster X is available in three different variants, while the Roadster X+ has two variants.
Ola Electric has stated that it has solved 99.1% of the cases against them. However, the specific details of the additional information and documents requested by the CCPA were not specified in the article. The CCPA has issued another notice to the company seeking additional information and documents related to customer complaints.
The revival of Ola Electric in the coming months will be crucial for the company. The company's revenue from operations declined by 19% from ₹1,296 crore to ₹1,045 crore, with the decline in revenue being due to service-related issues. Bhavish Aggarwal, the company's chief, stated that the recent loss is a one-time exceptional cost, expecting a similar instance in Q4 of FY 24-25.
As Ola Electric continues to navigate through these challenges, it remains to be seen how the company will address the concerns of its customers and improve its operations in the coming months.
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