Big Quality Turnaround at Ola Electric🛵
In FY25, Ola’s warranty costs exceeded ₹500 Cr (actually ₹555 Cr)
In FY26 → just ₹59 Cr.
That’s a ~90% drop.
What changed?
• Full shift to Gen 3 scooters (much more reliable)
• Gen 1 vehicles largely out of warranty
• Sharper diagnostics, faster service (TAT down from ~9 days to ~1 day)
• Better engineering & platform maturity
Management now expects warranty at just 2-3% of revenue — among the lowest in Indian EV 2W and competitive globally.
Warranty expense isn’t just a cost.
It’s a report card on product quality.
Huge positive for margins, cash flow & customer trust going forward.
Still early days — volumes need to recover and execution must sustain. But this is a very encouraging reset. @OlaElectric
#OlaElectric #EV #ElectricScooter #Investing