Ola Electric Reduces Q2 Loss, Calls Most Service Issues ‘Minor’
Ola Electric, India’s leading e-scooter manufacturer by market share, reported a reduced loss for the second quarter, boosted by a significant rise in sales. In its earnings report for the July-September quarter, the Bengaluru-based company revealed that its consolidated loss shrank to 4.95 billion rupees ($58.7 million), compared to 5.24 billion rupees in the same period last year. This improvement reflects the company’s growing presence in the electric scooter market.
Increase in Revenue Driven by Mass Market Models
Ola Electric’s quarterly revenue saw a notable jump of 39.1%, reaching 12.14 billion rupees. This growth was largely driven by the introduction of more affordable models priced below 100,000 rupees ($1,186). The company had not yet begun deliveries of these mass-market models in the previous year, which contributed to the significant increase in revenue. With these more budget-friendly scooters now available, Ola has expanded its customer base, making electric scooters accessible to a broader audience.
Service Surge and Company Response
Despite the positive financial performance, Ola Electric acknowledged a recent surge in service requests. However, the company emphasized that most of these requests were for “minor issues,” which it believes do not point to any systemic problems with its products. Ola’s management expressed confidence in its ability to handle these service demands, suggesting that the increase in requests was typical for a company scaling up its production and delivery capabilities.
Outlook for Future Growth
Ola Electric remains optimistic about its future, with plans to continue expanding its product offerings and market reach. The company is focused on solidifying its position in the electric vehicle market, particularly in India, where demand for sustainable transportation options is on the rise. As the company scales its operations and refines its products, Ola is well-positioned to lead the electric scooter market in the region, continuing its trajectory toward profitability.
