Ola Electric Mobility Anticipates Car Division Turning Ebitda Positive Next Quarter
With the help of cost-cutting measures that save over Rs 90 crore per month, Ola Electric Mobility Ltd. anticipates that its car division will turn Ebitda (earnings before interest, taxes, depreciation, and amortization) positive in the quarter beginning April 1.
Based on company-wide cost-cutting measures and efforts to enhance customer experience, the Bangalore-based company stated that it anticipates the automotive division to reach EBITDA breakeven in Q1 FY26.
Ola Electric reported that it has finished implementing its Opex Reduction and Network Transformation Program, which has resulted in monthly cost savings of Rs 90 crore.
By closing regional warehouses and transporting cars and spare parts straight from manufacturers to retail locations, the business reorganized its distribution network as part of this plan.
To save costs, it also enhanced sales and service networks and automated registration procedures.
Ola Electric's financial turnaround prediction follows a phase of layoffs and internal reorganizations characterized by dwindling market share and growing losses. Around 1,200 employees and contract workers from various areas, including customer relations, fulfillment, procurement, and charging infrastructure, were let go by the manufacturer in the last two months.
In addition, Ola Electric has swiftly grown its retail network, growing from 800 stores and service centers in November to 4,000 by January.
More than 95 percent of its physical locations, however, do not have the required certification under the Motor Vehicles Act to display and sell cars, provide test rides, or carry unregistered two-wheelers, according to a Bloomberg investigation.
In addition to dealing with an increasing number of consumer complaints over its goods and services, the company is also experiencing increased competition from traditional two-wheeler manufacturers that are aggressively entering the EV market.
The first ten months of this fiscal year saw a 29 percent increase in Ola Electric's two-wheeler sales to 311,841 units. In January, its market share was 25 percent. This is in contrast to a 33 percent share during the April–January timeframe.
There have also been a number of senior-level departures from the organization. Suvonil Chatterjee, the chief technology officer, and Anshul Khandelwal, the chief marketing officer, both resigned on December 27.
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Ola Electric's stock has dropped around 65 percent from its top when it first appeared on the market in August 2024. On the BSE, the shares ended the day Wednesday at Rs 51.11 each.