Ola Electric's Cost-Saving Triumph Aims for Profitability

Ola Electric has completed a cost-reduction initiative leading to Rs 90 crore monthly savings, streamlined operations, and enhanced customer experience. The transformation allows for quicker deliveries and is poised to reach automotive segment EBITDA breakeven in Q1 FY26, with anticipated growth by April 2025.

Ola Electric announced on Wednesday the successful completion of a company-wide initiative aimed at reducing costs and enhancing customer satisfaction. The effort, known as the Network Transformation and Opex Reduction programme, was launched in November 2024 and has delivered a sustainable cost reduction of Rs 90 crore per month.

This program involved significant changes, such as closing regional warehouses and shipping directly from factories, automating processes, and improving sales and service productivity. These efforts have resulted in a reduction in vehicle inventory time from 35 to 20 days and reduced delivery times for customers to 3-4 days.

The initiative positions Ola Electric for strong long-term growth, with expectations of achieving automotive segment EBITDA breakeven in Q1 FY26. The financial impact of these measures will begin to be seen fully starting April 2025.

(With inputs from agencies.)