Ola Electric posts wider loss on discounts, improving service quality: Report
It reported a loss of 5.64 billion rupees ($64.51 million) in the October-to-December quarter, compared with a loss of 3.76 billion rupees a year earlier.
Ola Electric reported a wider quarterly loss on the back of heavy discounts to counter rising competition and on improving the quality of services at the workshops, Reuters reported.
The electric two-wheeler maker that counts SoftBank as one of its investors, reported a loss of 5.64 billion rupees ($64.51 million) in the October-to-December quarter, compared with a loss of 3.76 billion rupees a year earlier, the newswire noted.
The company's shares fell 4% post results.
Ola Electric, which is under regulatory scanner for the quality of service at its workshops, incurred a one-time cost of 1.1 billion rupees to address the issue.
"October saw strong performance fuelled by festival sales, however the overall quarter was weak due to high competitive intensity and service challenges," the company said.
Ola Electric's entry-level models made up one-third of its volumes, higher than a mere 4% a year before, the newswire noted.
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07 Feb 2025
Autocar Professional Bureau

Shahkar Abidi