**Ola Electric Faces Government Scrutiny Over Service Network Expansion**
The Ministry of Heavy Industries has requested further information from Ola Electric Mobility regarding the expansion of its service network for battery-powered scooters. This inquiry follows an unsatisfactory initial response from the company, raising concerns about the disparity between the number of sales outlets and service centers. Sources indicate that the ministry is particularly interested in understanding why the company claims all its outlets provide after-sales services when there appears to be a significant gap.
Last month, the ministry sought clarification on discrepancies between Ola Electric’s reported sales figures and the registration of new scooters on the Vahan portal. Additionally, the Automotive Research Association of India (ARAI) and the International Centre for Automotive Technology (ICAT) have been tasked with verifying Ola founder Bhavish Aggarwal’s assertion that all 4,000 showrooms nationwide are equipped with service centers to handle customer complaints.
A company executive revealed that Ola Electric has informed the ministry that approximately 1,400 service centers are currently operational, capable of serving a substantial portion of customers. In an investor presentation on April 1, the company reported having 4,436 stores across India, with 3,365 owned by the company and the remainder operated by network partners. However, only 1,434 of these stores, or about 42%, are part of the service network.
Aggarwal previously stated that the company has transformed the electric vehicle purchase and ownership experience through its newly opened stores that are co-located with service centers, as part of their #SavingsWalaScooter campaign. Since October 2024, Ola Electric has been under regulatory scrutiny due to a surge in complaints regarding its scooters, leading to a show-cause notice from the Central Consumer Protection Authority (CCPA) and a subsequent investigation.
In response to the regulatory challenges and public criticism, Ola Electric announced plans to rapidly expand its sales and service network. During a recent earnings call, Aggarwal noted that the average turnaround time for service has improved significantly, decreasing from nearly 2.5 to 3 days in October to just 1.1 days currently, indicating a positive trend in customer service.
As Ola Electric navigates these challenges, the focus remains on enhancing its service infrastructure to meet customer expectations and regulatory requirements.
**FAQ**
**What is Ola Electric doing to improve its service network?**
Ola Electric is expanding its service network by increasing the number of operational service centers and improving turnaround times for customer service, responding to regulatory scrutiny and customer feedback.
