India’s two-wheeler market is undergoing a significant transformation led by Ola Electric, often dubbed ‘India’s Tesla.’ In just two years, the company has skyrocketed to 338,000 e-scooter sales, vowing to accelerate India’s shift to a cleaner, electric future. However, Ola’s rapid success has challenges, particularly in its service network.
Bhavish Aggarwal, the visionary behind Ola Electric, envisions replacing internal combustion engines (ICE) in India, where two-wheelers dominate the streets. Ola, valued at $5.4 billion, plans to quadruple its annual production capacity to 2 million e-scooters by the new year.
Despite Ola’s sales surge, the company’s network of over 400 service hubs is showing signs of strain. Reuters investigations reveal backlogs, insufficient spare parts, and repair waiting times ranging from three days to two weeks, particularly in major metropolitan areas like Mumbai, Chennai, and Bengaluru.
Ola, faced with an unprecedented surge in demand, grapples with service capacity issues. Aggarwal acknowledges the challenges, citing aggressive efforts to expand the service network by adding 100 new centres and hiring more technicians. However, reports suggest that the scale and quality of the service operations may differ from the company’s claims.
Industry dynamics & Ola’s goals
Reuters quoted Ravi Bhatia of JATO Dynamics, who emphasised the critical role of a robust service network in India, the world’s largest two-wheeler market. With Indians adapting to tech-packed EVs navigating challenging roads, Ola’s service infrastructure becomes pivotal to ensure customer satisfaction.
Aggarwal’s ambitious goal is to make all new scooters and motorbikes in India electric by the end of 2025, surpassing the government’s 2030 target of 70% EV adoption in new two-wheeler sales. Ola has positioned itself as the leader in India’s two-wheeler EV market, claiming a third of sales by volume.
Customer experience challenges
Service issues reported by customers include battery drainage, software glitches, and damaged wires. Some attribute the surge in service demands to the inexperience of Indian riders with e-scooters, leading to damages, especially during challenging weather conditions like the monsoon season.
A growing number of customers express frustration online about repair times and difficulties in securing servicing slots. Aggarwal dismisses much of the online criticism as ‘mudslinging’ by rivals, emphasising that the business has seen unprecedented success, with e-scooters reportedly selling every 10 seconds during India’s festive season.
While Ola Electric celebrates its phenomenal success in India’s evolving EV landscape, the service challenges highlight the complexities of scaling up in a demanding market. As Ola gears up for a $700 million IPO, overcoming these hurdles in service infrastructure becomes paramount for sustaining its leadership in India’s electric revolution.
