Ola Electric Partners with EY India to Tackle Rising After-Sales Complaints

Ola Electric has initiated a collaboration with EY India as part of a "service transformation" initiative aimed at tackling pressing after-sales challenges, addressing customer grievances, and countering declining sales figures. This partnership comes in response to a surge in customer complaints and dissatisfaction, with reports indicating that customer grievances have reached alarming levels.

The Role of EY India

According to a report by Source, EY India will play a crucial role in enhancing Ola Electric’s operational efficiency. This includes improving spare parts management and bolstering customer support, especially in regions where service centres are limited. The engagement involves approximately a dozen EY executives who are working closely with Ola Electric on a three-month project, with the potential for an extension if the initial results are promising.

An insider familiar with the project stated, "EY is aiding Ola in refining business processes, ensuring spare parts availability, and expanding services in underserved regions." This partnership aims to tackle the significant issues surrounding the availability of spare parts and the number of service personnel, which have been major pain points for customers.

Customer Complaints on the Rise

The urgency of this service improvement initiative has intensified in light of increasing customer complaints. Reports suggest that Ola Electric is currently facing about 80,000 complaints per month, with images surfacing of scooters piled up at service centres. Such high volumes of unresolved issues have raised alarms about the company's customer service capabilities.

In response to these complaints, the Central Consumer Protection Authority (CCPA) recently issued a show-cause notice to Ola Electric, citing potential violations of consumer rights and unresolved after-sales issues. Alarmingly, over 10,000 complaints are still pending resolution, underscoring the necessity for immediate action.

Expansion Plans for Service Network

In an effort to enhance customer service, Ola Electric has ambitious plans to expand its service network from 400 to 1,000 centres by the end of the year. However, industry experts are advising the company to prioritize improving the quality of existing service centres rather than merely focusing on increasing the number of locations.

Strengthening current service offerings may help address customer concerns more effectively and could lead to greater satisfaction among existing users. This advice reflects a growing consensus that quality should not be sacrificed for quantity in service delivery.

Addressing Share Price Concerns

In a related development, Ola Electric Mobility Limited recently addressed media reports regarding a 3% decline in its share value. This drop was attributed to concerns over discounts being offered on its Ola S1 X 2KWh electric scooter. In response to these concerns, the company clarified that no official price change has been made, although a festive promotional campaign is underway, providing limited-time discounts.

Clarification on Discounts Offered

To clarify the situation, Ola Electric issued a communication to the Bombay Stock Exchange (BSE) detailing the discounts available during the festive season. All customers are eligible for a general discount of ₹5,000 on the Ola S1 X 2KWh scooter. Additionally, a select group of customers can avail themselves of a more substantial discount of ₹25,000, but this is applicable only to a limited inventory of scooters.

The scrutiny surrounding the pricing of the Ola S1 X 2KWh intensified after the Automotive Research Association of India (ARAI) inquired about reports suggesting that the scooter was being sold at ₹49,999. In response to the inquiry, Ola Electric confirmed on 8th October 2024, that the official price of the Ola S1 X 2KWh has not changed. The ₹25,000 discount is applicable to a limited number of units, leading to confusion regarding the overall pricing strategy.

CEO's Involvement

Amid rising customer dissatisfaction, Ola Electric's CEO, Bhavish Aggarwal, is reportedly heavily involved in overseeing the service transformation project. His active participation highlights the company's commitment to addressing the ongoing issues and restoring customer trust.

Conclusion

Ola Electric's partnership with EY India marks a significant step toward addressing critical after-sales challenges and improving customer satisfaction. As the company navigates the complexities of customer grievances, expanding its service network, and clarifying its pricing strategies, the effectiveness of these initiatives will be closely monitored by both consumers and industry experts alike. The success of this collaboration may serve as a pivotal moment for Ola Electric as it seeks to enhance its reputation and build stronger relationships with its customers in an increasingly competitive market.