Ola Electric taps EY India boost customer service amid rising complaints and regulatory scrutiny

Ola Electric has bought in consulting services firm EY India to spearhead a ‘service transformation’ in response to growing after-sales service challenges, increasing customer complaints, and falling sales volumes, ET reports. Quoting sources familiar with the matter, the report said that about a dozen executives from EY came on-board at Ola Electric a few weeks ago on deputation for the three-month project. They are expected to provide guidance across various service-related areas, including optimizing business processes and improving spare parts inventory management for the Bhavish Aggarwal electric vehicle maker. The project’s tenure, it says, can be extended depending on the outcome.
“EY is helping Ola in streamlining the business processes, inventory management of spare parts and improving an on-ground presence in places where it has sales but no service,” the report cited a source. Aggarwal is closely involved in the whole process with the team, the person said.

Earlier this month, the Central Consumer Protection Authority issued a show cause notice to Ola Electric for alleged violation of consumer rights, misleading advertisement and unfair trade practices. The show-cause notice points to user complaints such as manufacturing defects, partial or no refunds on booking cancellations, recurring defects despite servicing, overcharging, inaccurate invoices, and multiple issues with batteries and vehicle components.
Last week, the Ministry of Heavy Industries (MHI) directed the Automotive Research Association of India (ARAI) to provide detailed inputs regarding consumer complaints against the EV maker.
Ola Electric has been grappling with increased customer complaints over after-sales service. As per National Consumer Helpline data 10,644 complaints against Ola e-scooters were received from September 1, 2023, to August 30, 2024. Of these, 3,389 relate to service delays, 1,899 pertain to delays in the delivery of new vehicles, and 1,459 involve unfulfilled promised services.