Ola Electric has teamed up with EY India for a “service transformation” project aimed at improving after-sales services and addressing rising customer complaints. This initiative seeks to enhance spare parts management, improve customer support, and strengthen service operations in underserved regions.
Service Challenges and EY’s Role in the Transformation
Approximately 12 EY executives are working closely with Ola Electric on this three-month project, which could be extended based on its success. The focus is on resolving supply chain issues, ensuring spare parts availability, and optimizing business processes.
An insider shared insights, stating:
“EY is aiding Ola in refining business processes, ensuring spare parts availability, and expanding services in underserved regions.”
One of the major issues highlighted is a shortage of spare parts and trained personnel in Ola’s service centers. CEO Bhavish Aggarwal is personally overseeing the initiative as the company faces growing pressure from rising customer grievances and deteriorating service quality.
Customer Complaints and Regulatory Scrutiny
Customer complaints have reached alarming levels, with 80,000 complaints per month being reported. Additionally, several images have surfaced online showing piles of scooters accumulating at service centers, further damaging Ola Electric’s reputation.
In response to unresolved complaints, the Central Consumer Protection Authority (CCPA) issued a show-cause notice to Ola Electric, citing alleged consumer rights violations. Reports indicate that over 10,000 complaints remain pending, adding to the company’s operational challenges.
Service Delays and Customer Frustration
Customers have expressed significant dissatisfaction with service delays. Many report waiting 30 to 45 days for repairs, even after subscribing to Ola Care Plus, a paid service that offers home pick-up and drop-off. Complaints range from minor issues like sensor failures to major problems affecting battery performance.
Akhilesh Dabharde from Nagpur shared his experience:
“For two to three months, my scooter was lying at the service center. I sent them countless emails, calls, and messages.”
The situation has escalated to the point where some frustrated customers have resorted to extreme measures, including setting fire to an Ola Electric showroom due to dissatisfaction with service quality.
Expansion Plans Amidst Challenges
To address these concerns, Ola Electric plans to expand its service network from 400 to 1,000 centers by the end of the year. However, industry experts warn that merely increasing the number of service centers may not resolve the underlying issues. They suggest that Ola should focus on improving the quality and efficiency of its existing service network to restore customer trust.
GST Invoicing Feature for Business Customers
In addition to tackling after-sales challenges, Ola Electric has introduced a GST invoicing feature targeted at businesses making high-value purchases. This update allows companies to add their GSTIN (Goods and Services Tax Identification Number) during checkout and claim input credits of up to 28% on eligible products such as electronics.
How the GST Invoicing Feature Works:
- Add GSTIN: During checkout, customers can select the “Add GSTIN” option within the Ola Electric app.
- Generate Invoice: Once the GSTIN is added, a GST-compliant invoice is automatically generated.
- Claim Input Credit: Businesses can use the invoice to claim input credits of up to 28%, depending on the product category.
Dhindsa emphasized the importance of this feature for businesses, especially those making bulk or high-value purchases, by helping them reduce costs through tax credits.
Ola Responds to Drop in Share Value and Discount Controversy
Amid these challenges, Ola Electric Mobility Limited also addressed concerns over a 3% drop in share value, which was reportedly caused by confusion around discounts on the Ola S1 X 2KWh electric scooter. The company clarified that no official price change has been implemented but that a festive promotional campaign is offering temporary discounts.
Clarification on Festive Discounts:
- A ₹5,000 general discount is available to all customers purchasing the Ola S1 X 2KWh scooter.
- An additional ₹25,000 discount is being offered to a select group of customers but applies only to limited inventory.
The confusion intensified when the Automotive Research Association of India (ARAI) raised questions about the scooter’s selling price, following reports that it was being offered for ₹49,999. Ola Electric responded to ARAI on October 8, 2024, confirming that the official price remains unchanged.
Conclusion
With mounting customer dissatisfaction and regulatory scrutiny, Ola Electric’s collaboration with EY India is seen as a critical step toward improving after-sales operations. As the company works diligently to rebuild its reputation while balancing festive promotions designed to attract new buyers, its ability to address these challenges efficiently will be crucial for sustaining growth and maintaining customer loyalty in the competitive electric mobility market.
As Ola Electric navigates these operational hurdles and expands its services while enhancing customer satisfaction initiatives, it remains poised for potential recovery and growth in an increasingly competitive landscape.
