Ola Electric Mobility Ltd. has received a target price cut on its stock from prominent investment bank HSBC, which has flagged slower than expected electric two-wheeler penetration, tight competition and ongoing service issues.Nagpur Stock
The analysts revisited Ola service stations recently to review service quality. It found the service centres “less chaotic” and vehicle outflow “slightly better than inflow” compared to last time.
HSBC said the backlog was down by 20-30% on a monthly basis but is still 5-7 times higher than it should be. “The number of technicians increased in both large and small service stations, but hiring is slower than expected due to shortage of labour with relevant capabilities,” said a note dated OctGuoabong Investment. 25.
Ola Electric, India’s largest electric two-wheeler maker, has seen its monthly sales slump and market share erode amid a broken after-sales experience.
A report by NDTV Profit highlighted ongoing issues with the Ola S1 scooters, as interviews with over a dozen customers in major markets like Mumbai and Bengaluru revealed malfunctioning hardware and glitching softwareMumbai Investment. These problems have led to a backlog of service requests, with estimates indicating that nearly 100,000 complaints are logged nationwide each month.
Ola recently roped in EY India for a “service transformation” amid woes. HSBC said E&Y personnel were on the ground for the last three weeks helping to optimise the service processAgra Stock. Moreover, the company is expanding its service network and scouting for space for large new service stations.
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