Ola Electric partners with EY India to address post-sales issues: Report

Ola Electric, one of India’s leading electric vehicle manufacturers, has brought in EY India to help tackle rising after-sales issues, reported The Economic Times. The collaboration is part of a ‘service transformation’ project aimed at addressing customer complaints, managing spare parts, and improving overall after-sales support. According to the report, the initiative is seen as crucial, especially as Ola is facing increasing customer grievances and challenges with its service network.
EY India, one of the country’s leading consultancy firms, has been engaged by Ola Electric to improve its after-sales services. This includes resolving problems related to spare parts availability, upgrading service quality in underserved regions, and enhancing overall customer satisfaction. It has been reported that approximately 12 EY executives are currently working closely with Ola on this three-month project, which may be extended if the results prove successful.
A company insider noted, “EY is aiding Ola in refining business processes, ensuring spare parts availability, and expanding services in areas where there are fewer service centres.” The shortage of parts and trained personnel has been a major complaint from Ola customers.
Ola Electric, led by CEO Bhavish Aggarwal, has been dealing with a rising number of customer complaints, which have reportedly hit 80,000 per month. This includes concerns over scooters piling up at service centres due to a lack of parts and timely service. The Central Consumer Protection Authority (CCPA) recently issued a show-cause notice to Ola Electric over unresolved consumer complaints, some of which have been pending for months. More than 10,000 cases are yet to be addressed.
To counter these issues, Ola Electric has announced plans to expand its service network from 400 centres to 1,000 by the end of the year. However, industry experts have advised that Ola should first focus on improving the quality of services at its existing centres rather than simply increasing the number of locations.
CEO Bhavish Aggarwal has reportedly taken a personal interest in the project with EY India, given the scale of customer dissatisfaction and the growing after-sales issues. It’s clear that the company needs to improve its service response, particularly in regions where customers have limited access to service centres and parts. This has become a pressing issue as more and more customers raise concerns about the condition and maintenance of their vehicles.
In addition to its after-sales challenges, Ola Electric has also faced scrutiny regarding a reported 3% drop in its share value. This decline was linked to concerns over discounts offered on its Ola S1 X 2KWh electric scooter. While there were reports that the scooter’s price had dropped to Rs 49,999, Ola Electric clarified that no official price change had been made.
In a statement to the Bombay Stock Exchange (BSE), the company explained that a limited festive promotional campaign had offered customers a discount of Rs 5,000 on the scooter. Additionally, a select group of buyers could avail a larger discount of Rs 25,000, but this applied only to a limited number of units.
The Automotive Research Association of India (ARAI) had asked Ola Electric for clarification on the scooter’s pricing after reports surfaced that it was being sold at a heavily discounted rate. Ola responded on October 8, 2024, stating that the Rs 25,000 discount applied only to specific units during the promotional period. The official price of the Ola S1 X 2KWh scooter remains unchanged, according to the company.