Ola Electric Incurs Net Loss Of ₹564 Crore Due To Service-Related Issues

Ola Electric reported that it incurred losses of ₹564 crore in the last quarter that ended December 31 due to service related issues. The net loss widened from ₹376 crore in the quarter before, due to which the company’s revenue from operations also declined by 19 per cent from ₹1,296 crore to ₹1,045 crore. 

2024 was not the year for the Bengaluru-based EV company wherein the company was riddled with unsatisfied customers over both poor product and service quality. This resulted in two show cause notices from the Central Consumer Protection Authority. In the first instance, the CCPA had received 10,644 complaints against the company against which Ola proudly claimed that it had solved 99.1 per cent of the cases. Later on, the CCPA had issued another notice to the company seeking additional information and documents related to complaints that customers had raised. 

Ola Electric’s chief Bhavish Aggarwal clarified that this expenditure was a one-time exceptional cost. It is expecting a similar instance in the last quarter of FY 24-25 too. Interestingly, despite the losses Ola Electric continues to remain the top three EV manufacturers with a 25.5 per cent market share in the third quarter. 

Ola Electric’s revival in the coming months will be crucial for the company that just launched its new range of electric motorcycles – Roadster X and Roadster X+. The former is available in three different variants, while the latter is available in two variants. Ola Electric’s indigenously built 4680 battery cells, will debut with the Ola Roadster X+ and it will feature one of the biggest batteries from the company at 9.1 kWh. Additionally, the motorcycles have also been built on the brand’s new Gen3 platform which Ola says aids low cost of production, and are more energy efficient than the previous platforms. But has that translated into better and reliable products is something that we will keep a tab of in the future.