Indian electrical automobile maker Ola Electric’s clients aren’t proud of its service and scooters, and it’s affecting the corporate’s inventory and market share. The firm’s shares fell by as a lot as 9.1% on Monday to ₹89.14, sending its market cap beneath $4.75 billion for the primary time since its IPO in August.
The firm’s shares are nonetheless buying and selling above their August IPO worth, however have fallen greater than 40% to a low of ₹89 (about $1.06) from a peak of ₹157 (about $1.87).
Monday’s sell-off coincides with a surge in buyer complaints concerning the reliability and efficiency of its scooters. The startup reportedly receives over 80,000 buyer complaints month-to-month, based on Indian every day newspaper, Mint.
“Most service centers appeared overwhelmed by service requests and were struggling to provide adequate service quality (as expected from an Auto OEM in India),” HSBC analysts wrote in a be aware after visiting a number of Ola Electric service stations.
The analysts wrote that Ola Electric “did not invest” sufficiently in servicing capability to match the volumes offered over the previous two years.
“There is an acute shortage of skilled manpower and testing equipment in most centers. Plus, there is a clear lack of experience in the development and maintenance of service centers visible in many locations. Product issues were more than the company expected. Issues ranged from sensor and software problems in the hub motor to battery discharge during non-usage, while other regular service requirements also accumulated due to staff shortages,” the be aware added.
Ola Electric can be quickly dropping market share. The firm commanded about 49% of the market within the quarter ended June, however its share had fallen to 27% by the top of September, based on figures printed by the Indian authorities.
Meanwhile, Indian automotive giants Bajaj and TVS are ramping up their concentrate on electrical automobiles — every now controls over 20% of the EV market.
Ola Electric founder and chief govt Bhavish Aggarwal (pictured above) final weekend mocked a comic who had raised issues about Ola Electric clients’ issues, alleging the comedian had failed in his profession and had taken bribes to criticize the corporate.
