Ola Electric, one of India’s most prominent electric vehicle (EV) manufacturers, has recently faced a significant challenge that has shaken consumer confidence—its servicing backlog. Despite strong product demand and ambitious expansion plans, the company’s inability to keep pace with after-sales service requirements has led to a decline in brand trust, sales, and market share.
The Challenge
Ola Electric’s rapid growth in the EV market came with a surge in customer demand. However, the company struggled to scale its service infrastructure at the same pace. As a result:
- Service backlogs piled up, leaving customers frustrated.
- Delayed resolutions for vehicle issues created dissatisfaction.
- Declining sales were reported, with retail numbers falling below 10,000 units for three consecutive months.
- Financial strain became evident, with Ola posting a net loss of ₹487 crore in Q3 FY2026.
Bhavish Aggarwal, Chairman and MD of Ola Electric, openly acknowledged the issue, stating: “We do have a service challenge, which we are working through that has impacted brand trust and, hence, sales are down in the last couple of quarters.”
Impact on Brand Trust
Brand trust is the cornerstone of customer loyalty, especially in the EV sector where reliability and support are critical. Ola’s servicing challenges have impacted trust in several ways:
- Customer Experience: Long wait times and unresolved issues eroded confidence.
- Market Perception: Negative word-of-mouth amplified concerns about Ola’s reliability.
- Investor Sentiment: Service-related challenges raised questions about scalability and sustainability.
- Competitive Positioning: Rivals with stronger service networks gained an edge.
Ola’s Response
Recognizing the urgency, Ola Electric has launched a “hyper-service” initiative aimed at strengthening its after-sales ecosystem. Steps include:
- Expanding service centers across key markets.
- Enhancing digital platforms for faster complaint resolution.
- Training technicians to improve service quality.
- Streamlining spare parts supply chains.
Aggarwal reassured stakeholders: “The good news is that we have improved our service operations meaningfully in the last three, four months or so. We are fixing it, we are fixing it.”
Lessons for the EV Industry
Ola’s experience highlights critical lessons for the broader EV ecosystem:
- Service Infrastructure Matters: Rapid sales growth must be matched with robust after-sales support.
- Transparency Builds Trust: Acknowledging challenges openly, as Ola did, helps maintain credibility.
- Customer-Centric Approach: EV adoption depends not just on product innovation but also on reliable service.
- Scalability Challenges: Startups must balance aggressive expansion with operational readiness.
Looking Ahead
Ola Electric’s servicing challenge is a reminder that brand trust is fragile. While the company has taken corrective measures, rebuilding confidence will take time. Success will depend on:
- Consistently delivering improved service experiences.
- Demonstrating reliability through reduced backlogs.
- Communicating progress effectively to customers and investors.
- Ensuring that future growth is supported by scalable infrastructure.
Conclusion
Ola Electric’s servicing challenge has undeniably impacted its brand image and market performance. Yet, the company’s proactive acknowledgment and corrective measures suggest a willingness to learn and adapt.
As India’s EV revolution accelerates, Ola’s journey underscores a vital truth: innovation alone is not enough—service excellence is equally critical to winning customer trust.