The "Service Hell" Paradox
Bhavish Aggarwal built Ola Electric on a philosophy of speed and disruption. In just three years, they captured 50% of India's EV scooter market. But by late 2024/2025, the cracks appeared. Social media was flooded with images of scooters gathering dust in service centers. The company was receiving 80,000 service complaints a month.
While the factory in Tamil Nadu churned out scooters at record speed, the service infrastructure collapsed. Market share dipped below 30% for the first time as rivals TVS and Bajaj capitalized on the trust deficit.
Market Share Erosion (2023-2025)
Data Source: Vahan Portal Trends (Approximated)
The Cost of a Revolution
Ola sells the S1 Pro at a premium, yet profitability remains elusive. High battery costs and escalating "Warranty Provisions" (money set aside for fixing faulty scooters) are eating the margins.
Unit Economics: S1 Pro Gen 2 (Estimated ₹)
Boardroom Simulation
Discuss these critical questions with your class or reveal the strategic insights.
Context: Service centers are overwhelmed. Sales are slowing due to bad PR.
Decision: Should Bhavish pause new launches (Motorcycles) to fix service centers, OR launch aggressively to drown out the noise?
Context: Ola builds its own battery cells (Gigafactory) to reduce costs.
Discussion: Is this a competitive advantage or a capital trap?
Select Your Strategy
OPERATION STABILIZE
Focus on Trust & Service
- • Halt Motorcycle Launch (6 months)
- • Double Service Center Technicians
- • Extend Warranty for free
OPERATION OVERDRIVE
Focus on Growth & Dominance
- • Launch "Roadster" Bikes immediately
- • Aggressive Discounts to clear stock
- • Open Factory-owned Mega Centers