Ola Electric Mobility Ltd. is set to make a major push in expanding its retail footprint with the announcement of opening 4,000 stores across India this month. CEO Bhavish Aggarwal shared the plan on social media platform 'X', stating, "Taking the Electric revolution to the next level this month. Going from 800 stores right now to 4000 stores this month itself. Goal to be as close to our customers as possible. All stores opening together on 20th Dec across India. Probably the biggest single day store opening ever!"
Aggarwal also highlighted that all the new stores will have “service capacity too,” signaling the company's focus on improving after-sales service alongside its retail expansion.
Taking the Electric revolution to the next level this month.
December 2, 2024
Going from 800 stores right now to 4000 stores this month itself. Goal to be as close to our customers as possible.
All stores opening together on 20th Dec across India. Probably the biggest single day store opening…This rapid expansion comes amid ongoing concerns regarding Ola Electric's service and product quality. The company has been facing significant backlash from customers, with over 10,000 complaints lodged with the National Consumer Helpline (NCH) between September 2023 and August 2024. Common grievances include delayed service, poor-quality components, and issues with batteries and vehicle parts.
AdvertisementIn response to these issues, Ola Electric recently received a show-cause notice from the Central Consumer Protection Authority (CCPA), which raised concerns about violations of the Consumer Protection Act, 2019. The notice cited misleading advertisements, unfair trade practices, and inadequate service as some of the primary allegations against the company.
Ola Electric's stock has also seen volatility since its debut in August 2024. On Monday, shares opened lower by 7.10%, but later recovered some ground, climbing 4% during the day.
AdvertisementOla Electric share price fell as much as 7.10% to Rs 81.20 apiece. It later recovered losses and traded 4.11% higher at Rs 91 apiece, as of 11:30 a.m. This compares to a flat NSE Nifty 50 index.
It has fallen 0.60% since listing. Total traded volume so far in the day stood at 2.4 times its 30-day average. The relative strength index was at 62.
Out of seven analysts tracking the company, five maintain a 'buy' rating, and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 8.1%.
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