New Delhi

Ola Electric is grappling with numerous complaints about its flagship electric scooter, including hardware and software issues, while facing scrutiny over its inflated valuation. This week, its stock fell nearly 8%, hitting an intra-day low of Rs 101 on Friday, before closing at Rs 102.18. Since reaching an all-time high of Rs 157.40 on August 20, Ola Electric’s shares have dropped by 35%.

Rajesh Sinha from Bonanza Financial Services explained that the volatility in Ola Electric’s stock stems from various challenges, such as rising competition, concerns about a potential slowdown in the electric vehicle (EV) market, and service-related problems. He noted that the company’s market share has decreased from 39% to 31%, with sales plummeting by 34% in August compared to July.

While some foreign brokerages remain hopeful about Ola Electric’s future, many customers report frustrations. One dissatisfied customer highlighted that the company’s scooters are frequently returning to service centers for repairs, leading to long wait times.

Ola Electric operates a direct-to-consumer model, managing over 500 experience centers and 430 service centers nationwide. In response to ongoing issues, the company announced plans to double its service network to 1,000 centers by the end of the year.