Bengaluru, India – March 22, 2025: Once hailed as a pioneer in India’s electric vehicle (EV) revolution, Ola Electric Mobility now finds itself navigating turbulent waters. The company’s shares have plummeted over 65% from their all-time highs, raising concerns about its future in the competitive EV market.
Stock Market Turmoil
Ola Electric’s shares debuted on the National Stock Exchange (NSE) on August 9, 2024, at ₹75.8 per share. The stock soared to a peak of ₹157.4 on August 20, 2024. However, as of March 17, 2025, the shares have nosedived to ₹47.80, marking a staggering decline of over 65% from their zenith.
Mounting Consumer Grievances
The Central Consumer Protection Authority (CCPA) issued a notice to Ola Electric after receiving over 10,000 consumer complaints within a year. The grievances ranged from unauthorized charges during warranty periods, delayed services, refusal or postponement of warranty claims, to subpar service quality. Additionally, customers reported issues like failure to provide refunds, lack of proper documentation, unprofessional conduct, and recurring problems with vehicle components.
Public Relations Fiasco
In October 2024, a public spat between Ola’s founder, Bhavish Aggarwal, and comedian Kunal Kamra further dented the company’s image. Kamra highlighted the poor condition of Ola’s e-scooters, sharing images of dusty vehicles outside a showroom. Aggarwal’s defensive response on social media did little to assuage public concerns, leading to a 9% drop in Ola’s share price following the incident.
Operational Challenges
The company has also faced operational setbacks. A mismatch between sales and registration data in February 2025 prompted government scrutiny. While Ola reported sales of 25,000 vehicles, only 8,600 were registered, a discrepancy attributed to a “temporary” backlog caused by terminating contracts with two vendors responsible for registrations. This backlog has raised questions about the company’s internal processes and transparency.
Competitors Capitalizing
As Ola’s market share dwindles, competitors are seizing the opportunity to expand. Companies like Ather Energy and Hero Electric have reported robust sales figures, capitalizing on Ola’s missteps. Ather Energy, for instance, saw a 25% increase in sales in the last quarter, while Hero Electric expanded its market presence by launching new models and enhancing customer service.
The Road Ahead
Ola Electric’s journey from a market leader to its current predicament serves as a cautionary tale in the fast-evolving EV industry. The company’s challenges underscore the importance of robust operational processes, effective customer service, and proactive public relations. As competitors continue to make strides, Ola must address its internal issues and rebuild consumer trust to reclaim its position in the market.
Disclaimer: This article is based on publicly available information up to March 22, 2025. The situation may evolve, and readers are advised to consult multiple sources for the latest updates.