Ola Electric Claims Rs 90 Crore Cost Reduction Per Month, Sets Q1FY26 Breakeven Goal

Ola Electric has finished the implementation of its network transformation and opex reduction program, which was aimed to reduce cost and improve customer experience, the company said on Wednesday.

The exercise has helped the company in cost reduction of ₹90 crore per month and will result in achieving automotive segment EBITDA breakeven in the next quarter (Q1FY26), the electric two-wheeler maker said in the statement.

The program included distribution network transformation projects like shutting all regional warehouses and shipping vehicles, spare parts and accessories from the factory directly to stores, automating registration and other processes, and productivity improvements in the sales and service network.

Through this, the company has also reduced its average vehicle inventory from 35 days to 20 days, and delivery time for customers from 12 days to 3-4 days, it said.

Ola Electric said the company’s vehicle registration process transformation is in its final stages and its daily registrations have reached over 800 per day.

“With all elements of the network transformation and opex reduction program implemented, Ola Electric has delivered on its commitment to operational excellence, and enhanced financial discipline and customer experience. These structural improvements position the company for strong long-term profitable growth and the company expects to achieve automotive segment EBITDA breakeven in Q1FY26,” it said.

In February, Ola Electric had sold 8,390 units as per the VAHAN portal. However, the company had said that the reduction in vehicle sales on the portal was due to its renegotiated terms with vehicle registration agencies to lower costs and improve efficiency. In an exchange filing earlier this month, it had claimed to have sold about 25,000 units in February to have the largest market share in the electric two wheeler segment.

After losing its number one position to Bajaj Auto in December 2024, it is for the second consecutive month that Ola Electric has maintained to have the largest market share.

The company has seen its market share declining from close to 50% in June last year to 25% in February this year.

The company has also been undergoing an internal restructuring exercise, leading to about 1,000 layoffs across various departments.