Ola Electric has announced that the cost reduction program it has recently implemented will result in ₹90 crore per month’s worth of savings and that the company is set to reach EBITDA breakeven in the next quarter which is the first quarter of financial year 2025-26. The initiative, which is called the Network Transformation and Opex Reduction Program has simplified the process by closing regional warehouses and instead sending vehicles, spare parts and accessories from the factory to the stores. Furthermore, Ola Electric has made its registration processes digital, which has reduced the vehicle inventory levels from 35 days to just 20 days. The delivery time for customers is also expected to be shorter as it will take 3-4 days instead of the previous 12 days. Ola Electric said that its vehicle registration process changes are in the final stages of implementation. Making the matters worse, Ola Electric has been in the headlines for the wrong reasons including raids, shutdown of showrooms and seizure of vehicles by transport authorities in various states on the charges of trade certificates which the company has denied. Furthermore, there is a problem of plenty for Ola Electric as it is facing complaints from consumers regarding service experience, many social media users have expressed their displeasure with the ownership and the after sales service. This controversy has even involved comedian Kunal Kamra in the online argument with Ola Electric’s founder Bhavish Aggarwal over the same. However, the costs cutting measures are expected to enhance Ola Electric’s financial position and to help it to reach its objective of EBITDA breakeven and also improve the efficiency of the customer service.
Ola Electric’s Cost-Cutting Plan to Save ₹90 Crore Monthly
