Ola Electric On Govt Shutting Down 100 Ola Showrooms: Unaware Of This
Just a few days ago, it was reported that over 100 dealerships of Ola Electric – one of the country's top EV two-wheeler manufacturers – are shutting down. These dealerships were reportedly getting shut down by the Maharashtra Transport Department due to them not having a trade licence. However, at the time, Ola Electric did not respond to any queries on the matter until now. Recently, it has been reported that Ola Electric has stated that it is unaware of any such notice from the authorities.
Ola Electric responds to 100 dealerships getting closed
While issuing a clarification on the topic of its dealerships getting closed by the Maharashtra Transport Department, a spokesperson from Ola Electric stated that, “Unaware of any notice from the authorities ordering the closure.” At the moment, the spokesperson has not added anything else on the subject.
To refresh your memory, it was reported that many Ola Electric dealerships across Maharashtra were operating without the mandatory trade certificate. As a result of this violation, the Transport Department of Maharashtra has begun shutting down these illegal dealerships of Ola Electric.
For those who may not be aware, having a trade licence is very crucial for any dealership of any brand. The Maharashtra Transport Department highlighted that each dealership should have its own individual trade certificate. However, Ola Electric has allegedly only acquired just one certificate and has opened multiple dealerships across the state.
During a crackdown on such illegal Ola Electric dealerships, the Transport Department of Maharashtra managed to seize 36 Ola EV scooters and shut down these dealerships. There are reports that have mentioned that out of the 3,400 dealerships of Ola Electric, only 100 of them have valid trade certificates.
Should you be worried about the closure of Ola Electric dealerships?
Well, if you are an existing customer of Ola Electric or you are planning to buy an Ola EV scooter or the newly launched motorcycle, then the shutting down of dealerships could be bad news for you. The reason is that you may face delays and reduced access to services and registration services.
Presently, it has been reported that apart from its dealerships getting shut down, the company is also going through a massive layoff. Under this layoff, over 1,000 employees have been laid off across departments including engineering, research and development, procurement, customer support, and charging infrastructure.
Prior to this layoff, another mass layoff took place at Ola Electric during which 500 employees lost their jobs. It was reported that these layoffs were a result of cost-cutting, restructuring, and a shift to automation in front-end operations, including showroom and customer support.
After reviewing all the reports, many experts have highlighted that the main issue behind Ola Electric not being able to become stable and provide better quality products and services to its customers is due to its rapid expansion. The company currently focuses aggressively on expansion rather than complying with the authorities and making sure their customers get trouble-free scooters and bikes.
The only way for Ola Electric to bounce back from these issues is to make sure that all of its dealerships have adequate licences. It also needs to make its quality control more stringent and make sure that the customers who complain about the products are heard and rectified. At the moment, the company needs to shift its focus towards quality rather than quantity if it wants to remain as the top electric automaker in India.