Why Did Ola Electric’s October Sales Plummet 61% YoY to 16,034 Units?
Click to start listening
Synopsis
Ola Electric's October sales have plummeted significantly, sparking concerns over service quality and recent allegations surrounding employee treatment. With a staggering 61% drop in sales from last year, the company faces scrutiny just as it navigates troubling legal issues. What does this mean for Ola Electric's future?
Key Takeaways
- Ola Electric reported 16,034 e-scooter sales in October.
- 61% decline from the previous year.
- Sales in Goa suspended over service complaints.
- Allegations of employee mistreatment and harassment.
- Next court hearing is on November 17.
Mumbai, Nov 1 (NationPress) Ola Electric, led by Bhavish Aggarwal, reported sales of 16,034 e-scooters for October, representing a staggering 61% decrease compared to 41,843 units sold during the same month last year, as revealed by data from the government's Vahan portal on Saturday.
In September, Ola Electric had achieved sales of 13,421 units, according to Vahan records.
This decline in sales coincides with the temporary suspension of sales in Goa, attributed to complaints about subpar after-sales service and delays in obtaining registration certificates.
Additionally, the electric vehicle manufacturer experienced significant pressure on its shares during the Muhurat Day trading session on October 21, following reports implicating senior Ola Electric executives in the suicide of 38-year-old engineer K. Aravind.
Aravind, who worked as a homologation engineer at Ola Electric, reportedly took his life on September 28 at his residence in Bengaluru. In a 28-page handwritten note, he accused his superiors of persistent workplace harassment and of withholding salaries and other financial entitlements.
During court proceedings, advocate Prasanna Kumar, representing the complainant, characterized Ola Electric as “worse than the East India Company,” alleging egregious mistreatment of employees.
He raised suspicions regarding a transfer of Rs 17.46 lakh to Aravind’s account two days posthumously, deeming it dubious.
The defendant's attorney contended that the case was initially recorded as an Unnatural Death Report (UDR), arguing that a new FIR should not have been initiated.
Ola Electric has refuted all allegations, asserting that Aravind never filed formal complaints about harassment during his tenure.
After evaluating both perspectives, the High Court instructed the police to pursue a thorough investigation while ensuring that the petitioners are not subjected to harassment. The next hearing has been set for November 17.
Point of View
It's crucial to present a balanced perspective on Ola Electric's recent challenges. While the decline in sales raises concerns about operational efficiency and customer satisfaction, the serious allegations surrounding employee treatment cannot be overlooked. It's essential to ensure that all parties involved are heard and that the investigation proceeds transparently. We must hold companies accountable while also recognizing the complexities involved in corporate governance.
NationPress
04/11/2025
Frequently Asked Questions
What caused the decline in Ola Electric's sales?
The decline in sales is attributed to temporary suspensions in Goa due to complaints of poor after-sales service and delays in registration certificates.
What allegations are being made against Ola Electric?
Ola Electric is facing serious allegations related to the suicide of engineer K. Aravind, including claims of workplace harassment and financial misconduct.
What is the company's response to the allegations?
Ola Electric has denied all allegations, stating that Aravind did not file any formal complaints during his employment.
When is the next court hearing scheduled?
The next court hearing regarding the allegations is set for November 17.
How has Ola Electric's share price been affected?
Ola Electric's share price faced pressure during the Muhurat Day trading session due to the surrounding controversies and allegations.
