The global consulting services firm is expected to guide the startup led by Bhavesh Aggarwal in numerous service-related business areas, ranging from optimizing business processes and spare parts stocking to managing inventory of components.
Ola Electric, the leader in the electric two-wheeler market, has recently enlisted the services of EY India to undergo a “service transformation” in response to increasing consumer complaints and declining sales figures, according to sources familiar with the situation. The consultancy firm is expected to guide the Bhavish Aggarwal-led startup through various service-related improvements, such as business process streamlining and better inventory management of spare parts.
Despite reaching out, Ola Electric did not respond to requests for comments by press time on Tuesday. An EY India spokesperson declined to discuss specifics, citing client confidentiality.
The collaboration has introduced nearly a dozen EY executives to Ola Electric, embarking on a three-month project aimed at addressing the company’s immediate service challenges. This period could extend based on the project’s success. These executives are tasked with overhauling Ola’s business processes, improving spare parts inventory management, and enhancing service presence in areas where sales exist, but service support is lacking.
This strategic move follows widespread social media coverage of Ola Electric models lying unused at service centres and a high volume of customer complaints, prompting action from consumer watchdogs and policymakers. Recently, the Central Consumer Protection Authority issued a show-cause notice to Ola Electric for potential consumer rights violations, misleading advertising, and unfair trade practices, spotlighting over 10,000 unresolved service complaints.
Amid these challenges, Ola Electric plans to expand its service network from 400 to 1,000 centres by the end of the year, though industry experts suggest that enhancing the quality of existing centres should be the priority. The company has faced heightened scrutiny over after-sales service issues, software bugs, and hardware malfunctions, contributing to a decline in sales and market share. Staff turnover has compounded these issues, with significant departures in the service leadership.
Despite these setbacks, Ola Electric reported a boost in registrations this month, attributed to aggressive discounting, with over 15,672 units registered as of October 14, representing a market share of 34%, as per company disclosures citing government data.
In another development, Ola Electric received a communication from the Automotive Research Association of India regarding its pricing strategy during a government subsidy qualification, which the company addressed by clarifying its ongoing limited-time festive campaign.
