Ola Electric announced the successful completion of its Network Transformation and Opex Reduction Program, a company-wide initiative launched in November 2024 aimed at reducing costs and improving customer experience.
The initiative has delivered a sustainable cost reduction of ₹90 crores per month. As a result, Ola Electric expects to achieve automotive segment EBITDA breakeven in the next quarter (Q1 FY26), with the financial impact of these initiatives fully reflecting from April 2025 (Refer to Annexure 1 for details).
Transforming the Network
The program has included distribution network transformation projects such as shutting down all regional warehouses and shipping vehicles, spare parts, and accessories directly from the factory to stores. Additional changes include automating registration processes and improving productivity in the sales and service network.
These changes not only delivered cost savings but also improved operational efficiency, reducing average vehicle inventory from approximately 35 to 20 days and reducing delivery time for customers from 12 days to 3-4 days.
A Boost in Registrations
The vehicle registration process transformation is nearing completion. Daily registrations have significantly improved, with over 800 registrations per day, surpassing the average daily sales for January-February 2025 (Refer to Annexure 2 for details).
Looking Ahead
These structural improvements position the company for long-term profitable growth, and Ola Electric expects to achieve automotive segment EBITDA breakeven in Q1 FY26.
