Electric vehicle maker Ola Electric held its earnings conference call last week where the company’s CEO Bhavish Aggarwal shed light on the increasing customer complaints at the firm.

What Happened: In the call, Aggarwal said that the company currently has around 780 stores and is seeking to expand this to about 2,000 stores by March. The CEO also referred to a capacity challenge concerning its services that it faced in the second quarter.

Almost all of the service backlogs due to the capacity issue have been solved now from more than 1,985 to zero, Aggarwal claimed.

The CEO also explained what he called the firm’s T+1 service where a customer would receive their vehicle within a maximum of two days from putting it up for service. He noted that this process now applies to 80% of incoming cases, aligning with industry standards.

The company has been facing severe backlash due to escalating customer complaints which reportedly stood at around 80,000 per month. In October, Ola received a show cause notice from the Central Consumer Protection Authority (CCPA) for allegedly violating consumer rights, running misleading advertisements and unfair trade practices.

Commenting on the complaints, Aggarwal said the reported figure of 80,000 per month was “not bad for a 8,00,000 unit in operation”. He explained that not all of the complaints were due to issues with the product.

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“More than two-thirds are actually around these kind of minor issues where no part is actually changed,” the Ola CEO said.

Many of these visits are routine check-ins, part of the customer’s scheduled maintenance. Over two-thirds of the issues are relatively minor, such as loose components or customers needing assistance with understanding how their software operates. In such cases, technicians provide guidance and clarification to ensure proper usage, he added.

Ola’s share rebounded after sinking 3% to reach a fresh record low during Monday’s early trade. The company’s Q2 net losses narrowed year on year to ₹495 crore, compared with ₹524 crore in the same period last year.

However, losses widened sequentially from ₹347 crore in the June quarter, highlighting continued operational challenges. The company’s revenue from operations rose 39% year on year, reaching ₹1,214 crore.

Despite this, analysts at Kotak Securities remain optimistic about the company's long-term prospects and believe that current valuations already account for the risks of market share loss amid intensifying competition in the electric vehicle sector.

Price Action: Ola Electric was trading 6.05% higher at ₹77.12 on Monday.

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