A 26 year old mechanic set fire to an Ola Electric showroom in Kalaburagi, Karnataka, causing INR 850,000 in damages due to dissatisfaction with e-scooter servicing.
The incident occurs as Ola Electric plans to enter the e-three-wheeler market, despite widening losses in Q1 FY25.
This highlights customer service challenges in India's growing EV sector, coinciding with government plans for new EV incentives.
A 26-year old man was arrested for allegedly setting an Ola Electric’s showroom on fire in Karnataka’s Kalaburagi area over “unsatisfactory” servicing of his newly purchased electric scooter.
The incident took place yesterday (September 10), raising concerns about the quality of service at Ola Electric.
According to Ola’s website, it operates a total of 431 service stations across India.
As per media reports, Mohammad Nadeem, a mechanic by profession, bought the two-wheeler last month, a few days after which he brought it back for servicing on facing trouble with the scooter, Reuters reported, citing Kalaburagi’s police commissioner.
“The (servicing) response was not good, he went multiple times. Yesterday (Tuesday), when he went, he carried petrol and set fire to six bikes,” he said.
The fire caused damage estimated at INR 850,000, though no injuries were reported.
The cause of the fire was earlier suspected to be a short circuit. However, after Nadeem’s role in the arson came to light, he was taken into custody for interrogation. A complaint has been registered against him.
Responding to the incident, Ola said in an X post, “The perpetrator of this violent act has been identified and an FIR has been lodged against the individual. He has been arrested and an investigation is ongoing.”
The latest development comes two weeks after it was reported that a fire broke out at an Ola showroom in Madhya Pradesh’s Indore city. However, there were no casualties and the showroom was fully evacuated.
This also comes at a time when the Bhavish Aggarwal-led company is gearing up to enter the electric three-wheeler (3W) market to take on the likes of Euler Motors, Piaggio, Mahindra Electric, among others.
Ola Electric
is developing an in-house electric three-wheeler and plans “to bring it to the market soon”, CEO and managing director Aggarwal told CNBC-TV18. However, he did not provide a specific timeline for the launch.
It is pertinent to note that Ola Electric’s consolidated net loss widened 30% to INR 347 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 267 Cr in the year-ago quarter. With its EV 3W bet, the company will look to chart a course to profitability.
This also comes close on the heels of Centre looking to accelerate EV penetration in the country. Recently, union minister for heavy industries H D Kumaraswamy said that the Centre will roll out the third edition of its demand incentive scheme for EVs, FAME-III in the next two months.
Shares of Ola Electric ended today’s trading session marginally higher at INR 115.60 apiece on the BSE.
(Note: The story has been updated with Ola’s response)
