- An alarming wave of reports detailing numerous hardware and software failures plaguing the e-scooters, alongside widespread dissatisfaction with the company’s service centers across the nation.
- Company’s market share has diminished considerably, dropping to 27% in September from 38% earlier this year.
Ola Electric, a prominent player in India’s electric vehicle (EV) market, has witnessed a catastrophic decline in its share price, plummeting to approximately Rs90 in morning trading on October 7, 2024.
The 8.5 per cent drop from previous sessions reflects a broader crisis fueled by angry customers voicing their grievances on social media regarding the company’s flagship electric two-wheeler, the S1 series.
Since its debut on the stock market at an initial price of Rs76, Ola Electric’s shares reached a peak of Rs157.40.
Widespread dissatisfaction
However, the steady descent that followed can be attributed to an alarming wave of reports detailing numerous hardware and software failures plaguing the e-scooters, alongside widespread dissatisfaction with the company’s service centers across the nation.
Such prevailing issues have led to a significant erosion of customer trust and have contributed to a staggering 42-43 percent decline from its highest value.
The company’s market share has diminished considerably, dropping to 27 per cent in September from 38 per cent earlier this year, primarily due to escalating competition and burgeoning complaints regarding service quality.
Sales figures further underscore this decline, with a noticeable drop from 27,587 e-scooters sold in August to just 24,665 units in September, as per the government transportation portal Vahan.
A concerning outlook
Compounding these issues, competitors have begun launching newer models, often at similar price points, further eroding Ola’s market standing.
The level of customer dissatisfaction has reached alarming proportions, as evidenced by incidents such as the destruction of an Ola showroom in Karnataka by a disgruntled customer.
Reports indicate that Ola Electric receives around 80,000 complaints each month, reflecting systemic issues that require urgent attention. Industry analysts have noted that under these circumstances, Ola’s shares are currently deemed overvalued, marking a concerning outlook for the company.