Ola Electric Reports 75% Sales Decline in February 2025, Cuts 1,200 Jobs Amid Financial Struggles
The leading Indian electric scooter manufacturer, Ola Electric, struggles with major operational challenges today. Ola Electric generated total sales of 8,647 units during the period from February 2024 to February 2025 while starting with 33,906 units in February 2024, resulting in a 75% annual decrease. Internal corporate dissensions and market competition have led to the massive restructuring of its employee base.
Sales Decline and Market Share Loss
Ola Electric offered 8,647 units for sale in February 2025, yet its competitor’s sales performance remained high. From January through February 2025, the company recorded 8,647 unit sales as Bajaj TVS and Ather Energy achieved notable market growth. TVS Motor experienced a 28.7% increase in sales figures for the month, and Bajaj Chetak recorded an 81.8% increase during this period.
Ola Electric’s decreasing sales can be attributed to its substandard product quality, deteriorating services, and deceitful marketing strategies. Market confidence decreased as Ola Electric diminished its customer base to Ather Energy and Hero MotoCorp through poor product quality, inadequate services, and misleading marketing.
Ola Electric experienced declining market performance due to its failure to reach essential objectives within the PLI ACC scheme, which created more accurate sales projections for its upcoming strategies. According to expert analysis, the main causes of revenue decline at Ola Electric stem from trust problems and system reliability failures.
Workforce Reduction Amidst Financial Struggles
Financial challenges at Ola Electric pushed the company to eliminate its staff. Due to its workforce reduction plan, Ola Electric forced its employees to leave their occupations. They must leave the company by removing over a quarter of their workforce. The operations efficiency measures by Ola Electric led to employee reductions which aimed at reducing expenses. Ola Electric cut personnel from permanent positions and contract pools who work in manufacturing facilities, supply chain operations, and service delivery branches.
Ola Electric management also made organizational improvement changes, which reduced employment opportunities and affected the layoff of people to curb organizational costs. Ola Electric laid off Contract and permanent staff employees working in the manufacturing plants, the supply chain, and the delivery of services branches. The layoffs at Ola Electric began in Nov-Dec of the fiscal year 2024-2025 by letting off about 400 of its employees.
Striving for Recovery
Ola Electric refuses to give up its market position despite its present challenges. The organization plans to implement an extensive plan to restore its market position and lost monetary assets. Ola Electric aims to improve product quality and customer service delivery through solutions to restore its decreasing sales patterns. The upcoming business strategy of Ola Electric targets market recovery to capture its original position in the electric scooter competition.
