Ola Electric has been making headlines lately, mostly for all the wrong reasons. Customer complaints about their electric two-wheelers have skyrocketed, surpassing over a lakh. Now, a recent heated exchange on the X platform between CEO Bhavish Aggarwal and comedian Kunal Kamra only added fuel to the fire. This confrontation drew widespread criticism and backlash, with many calling out Bhavish’s ego, ultimately damaging the company’s brand value.
Surprisingly, the surge in complaints against Ola’s two-wheeler electric vehicles has escalated to such an extent in recent months that the Indian government has felt compelled to intervene.
On October 3, 2024, the Central Consumer Protection Authority (CCPA) issued a show-cause notice to Ola Electric, citing potential violations of the Consumer Protection Act, 2019. The notice followed a flood of complaints from consumers about service deficiencies and unmet promises, with Ola Electric required to respond within 15 days. The move signals a serious effort by the government to tackle the widespread grievances.
So, what went wrong for Ola Electric? Let’s dig deeper into the mounting issues the electric vehicle company faces.
Consumer Complaints Against Ola Electric Reach a Boiling Point
Complaints against Ola Electric have been piling up, primarily revolving around service inefficiencies, unfulfilled refund requests, and recurring issues with vehicle components. Allegations of misleading advertisements have also damaged the company’s credibility, once seen as a visionary leader in eco-friendly transportation.
In a shocking incident that highlights the growing discontent, a 26-year-old mechanic set fire to an Ola Electric showroom in Kalaburagi, Karnataka, causing damages amounting to ₹850,000. This drastic act was triggered by his repeated visits to the showroom to address ongoing issues with his recently purchased two-wheeler electric vehicle, only to have his requests for assistance repeatedly ignored by the outlet staff. This incident is a stark reminder of the escalating tensions between consumers and the company.
The severity of the situation is further underscored by media reports revealing that Ola Electric receives an average of around 80,000 complaints monthly, overwhelming its service centres. On peak days, this number can spike to 6,000-7,000, resulting in long wait times, overburdened staff, and growing customer dissatisfaction.
According to data from the National Consumer Helpline, a staggering 10,644 complaints were documented against Ola Electric between September 1, 2023, and August 30, 2024. Among these, 3,389 complaints were related to service delays, 1,899 to delayed deliveries of new scooters, and 1,459 involved unfulfilled service commitments. This growing wave of discontent has led to regulatory scrutiny, with the CCPA demanding answers from the e-scooter manufacturer.
The Aggarwal-Kamra Feud
The tipping point for public scrutiny arrived on October 6 when comedian Kunal Kamra took to the X platform to criticise Ola Electric’s customer service, sharing images of scooters gathering dust at a dealership. Kamra tagged prominent figures like Nitin Gadkari, the Minister of Road Transport and Highways, and the Department of Consumer Affairs, raising questions about EV adoption in India. In a follow-up post, he tagged Bhavish Aggarwal, stating, “This @bhash has no responsibility, just posturing.”
Aggarwal quickly fired back, accusing Kamra of engaging in a “paid tweet” to harm Ola’s reputation. He even offered Kamra more money than what he supposedly made in his comedy career if he would help improve Ola’s services. The back-and-forth quickly escalated, capturing the attention of frustrated customers and industry watchers alike.
Ola Electric Shares Reaches All-Time Low
The ripple effects of the public spat between Bhavish Aggarwal and Kunal Kamra didn’t just end on social media.
The very next day, on October 7, Ola Electric’s share prices took a nosedive, dropping over 9% to ₹89.98 by 1:48 PM. This decline marks a staggering 38.5% drop from the company’s all-time high of ₹146.38 on August 19, although it still maintains an 18.4% lead over its IPO price of ₹76.
Ola Electric’s financial picture isn’t looking too rosy either. Though the company controls nearly 50% of the two-wheeler EV market in India, the 30% YoY surge in net losses amounting to ₹347 crore in Q1 FY25 is quite worrisome. This alarming rise is primarily driven by a 26.6% YoY jump in operating expenses, reaching ₹1,849 crore during the same period.
Additionally, Ola Electric’s increasing dependency on Chinese imports poses a significant concern that cannot be overlooked.
As Ola Electric grapples with rising customer complaints, financial losses and declining market confidence, the question remains: Could this be a wake-up call for Ola Electric, or is it indicative of deeper issues within the company that could threaten its ambitious goals? The need for effective resolution strategies has never been more urgent.
