Ola Electric’s Share Price Tumbled 8% Amid Rising Customer Service Issue

Ola Electric Mobility Ltd, the Indian electric vehicle (EV) startup, has faced a significant downturn in its stock value. Shares of the company fell by ~8% on Monday, October 07, 2024, marking the 3rd consecutive day of losses. This decline comes amidst growing concerns about the company’s market share and customer service issues.

Since its listing in August at a price of ₹76, Ola Electric’s stock has experienced a roller coaster ride from its post-listing high of ₹157.4. After initially doubling from its issue price, it has now plummeted by 43%. This decline is largely attributed to a decline in market share and a surge in customer complaints.

The company’s market share has eroded from 52% in April to 27% in September, according to VAHAN data. This decline can be attributed to increased competition from traditional automakers like Bajaj Auto and TVS Motor, who have been aggressively expanding their EV offerings.

Ola Electric has also been grappling with numerous customer service issues. Complaints about poor service, malfunctioning scooters, and inadequate spare parts have flooded social media platforms. These issues have tarnished the company’s reputation and negatively impacted its stock price.

In an attempt to address these concerns, Ola Electric launched a BOSS sale with festive discounts of up to ₹40,000 and an S1 X scooter range starting from ₹49,999. However, the discounts have failed to alleviate customer dissatisfaction.

The company’s founder, Bhavish Aggarwal, has also been caught in the crossfire of criticism. His public feud with stand-up comedian Kunal Kamra over the company’s service issues has further exacerbated the negative sentiment surrounding Ola Electric.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.