Ola Electric Shares Hit All-Time Low, Investors Lose Around Rs 40,000 Crore

Ola Electric's shares under Bhavish Aggarwal have suffered considerably, losing investor value worth Rs 38,000 crore in a matter of a few months.

Its shares are currently traded at a low of around Rs 70 a share, dropping by almost 55% from its highest value of Rs 157.40 a share. It has even dropped below the price it launched in public offering at Rs 76.

Due to this sharp fall, Ola Electric's market capitalization has dropped from its all-time high of nearly Rs 69,000 crore to around Rs 31,000 crore.

The downfall is greatly due to growing customer complaints about the product quality and service of the company. There have been several complaints from Ola Electric consumers about their vehicles.

Kunwar Pal, a Gurugram resident, complained to IANS that he purchased an Ola electric scooter in the last week of January. "While riding, its rear wheel got stuck. Now, after reaching the service centre, I have discovered that its battery is dead and it will take Rs 30,000," he said.

Yet another customer, again from Gurugram, told us that his electric scooter has been giving trouble ever since he bought it four months ago. "The brake shoe has collapsed three times within a month. The service is terrible," he said.

Customers have also raised issues about glitches in the car's software, batteries, and even stuck tyres.

The profitability of Ola Electric has also taken a hit; its net loss during the July-September quarter (Q2 FY25) was 43% higher at Rs 495 crore compared to the Rs 347 crore seen in the last quarter (Q1 FY25).

With the aim to address these complaints, the Central Consumer Protection Authority (CCPA) asked the Bureau of Indian Standards (BIS) to carry out an in-depth inquiry regarding the way the company handles customer complaints. The CCPA, headed by chairperson Nidhi Khare, directed that the issue be probed by BIS and submit a report within 15 days.

Ola Electric last month stated that 99.1% of the 10,644 complaints filed on the National Consumer Helpline (NCH) had been resolved. The CCPA, however, issued a show-cause notice to the company for violating consumer rights.