Ola Electric Mobility Ltd has taken significant strides toward enhancing its operational efficiency and customer satisfaction with the successful completion of its Network Transformation and Opex Reduction Program. Announced on Wednesday, this strategic initiative, which kicked off in November 2024, has resulted in an impressive monthly cost savings of ₹90 crore. This transformation is not just about cutting costs but also positioning Ola Electric for robust long-term growth in the automotive sector.

Strategic Cost Reductions

The company has been proactive in implementing various changes to streamline its operations. Key elements of the program include:

• Eliminating Regional Warehouses: Vehicles and parts are now shipped directly from the factory to stores.
• Automating Processes: Registration and other operational tasks have been automated to boost efficiency.
• Enhancing Productivity: Improvements in sales and service networks have been prioritized.

These changes have not only slashed operational costs but have also significantly improved customer service metrics. For instance, the average vehicle inventory has decreased from 35 days to just 20 days, while delivery times have plummeted from 12 days to a remarkable 3-4 days.

Positive Financial Outlook

Ola Electric aims to achieve EBITDA breakeven in its automotive segment by the end of the next quarter (Q1 FY26). The financial benefits of these initiatives are expected to start reflecting fully from April 2025. In a statement, Ola Electric emphasized, “This initiative has delivered a sustainable cost reduction of ₹90 crore per month,” highlighting its commitment to financial stability and operational excellence.

Enhanced Registration Process

Ola Electric is also nearing the completion of its revamped vehicle registration process. The company’s daily registration numbers have seen a substantial uptick, rising to over 800 registrations per day, surpassing the average sales figures from January to February 2025. This improvement showcases the effectiveness of the ongoing transformation.

Recent Financial Performance

Despite these advancements, Ola Electric faced challenges in its fiscal third-quarter report, revealing a net loss that widened to ₹564 crore, compared to ₹376 crore the previous year. Revenue also dipped by 19% year-on-year, falling from ₹1,296 crore to ₹1,045 crore.

Market Response

As of the latest trading session, Ola Electric’s shares saw a slight decline of 0.75%, trading at ₹51.29. This fluctuation reflects investor sentiment amidst the company’s ongoing transformation and financial restructuring efforts.

Looking Ahead

With the completion of the Network Transformation and Opex Reduction Program, Ola Electric is on a promising path towards operational excellence, enhanced financial discipline, and improved customer experiences. The company’s proactive measures and strategic focus on cost reduction position it well for a competitive future in the electric vehicle market.

For more insights on electric mobility trends, check out Swiggy’s plan for a 100% electric fleet by 2030.