Ola Electric, once hailed as the face of India’s electric vehicle (EV) revolution, is now grappling with a significant decline in both market share and investor confidence. Once dominating nearly half of India’s electric two-wheeler market in May 2023, the company now holds just 20%, falling behind legacy players like TVS Motor and Bajaj Auto. In its latest quarterly results, announced on Thursday, Ola reported a steep 62% drop in revenue year-on-year and posted a substantial loss of ₹8.7 billion.
Despite a high-profile IPO in August 2024 that raised ₹60 billion (approximately $700 million) for growth and expansion, the capital appears insufficient to steady the ship. In a bid to stay afloat, Ola’s board recently approved raising an additional ₹15 billion through non-convertible debentures. However, investor sentiment remains bleak. Since going public, the company’s share price has plummeted by 30%, closing at ₹53 just before the earnings announcement.
Regulatory Scrutiny and Operational Setbacks
Ola Electric’s troubles extend beyond poor financial performance. The company is currently under investigation by India’s stock market regulator over allegations that it exaggerated sales figures, which reportedly do not align with official vehicle registration records. The regulator has also flagged Ola for breaching disclosure norms, citing its tendency to announce major updates on social media before notifying investors formally.
Meanwhile, the Ministry of Heavy Industries is examining Ola’s sales data, particularly because the company benefits from the government’s production-linked incentive (PLI) scheme. In addition, transport departments in four Indian states have issued notices to Ola for allegedly operating showrooms without proper regulatory clearances. These developments cast serious doubts on the company’s internal controls and transparency.
Leadership Style Under Fire
Amid these growing challenges, Ola Electric’s founder and CEO, Bhavish Aggarwa,l has drawn criticism for his confrontational online presence. Rather than addressing product and service concerns directly, Aggarwal has engaged in public spats on social media, including targeting stand-up comedian Kunal Kamra and others who raised issues about after-sales support. While Aggarwal’s bold persona may have resonated during Ola’s rise, it now appears out of step with the company’s urgent need for course correction.
Observers argue that Ola Electric requires less showmanship and more strategic focus. With customer satisfaction dwindling and investor patience wearing thin, many believe the company must address critical problems in product quality, customer service, and compliance. Unless Aggarwal can deliver a strong and credible turnaround plan, the company’s future looks increasingly uncertain.
From being a beacon of India’s start-up success to a struggling EV manufacturer, Ola Electric’s journey serves as a cautionary tale. As competition intensifies and regulatory oversight tightens, the company must act swiftly to regain trust and stabilize operations, or risk further decline in one of the world’s fastest-growing EV markets.
