Ola Electric Mobility shares rise over 6% after launching 3,200 new stores

Shares of Ola Electric Mobility gained more than 6% to hit an intraday high of ₹99.95 apiece on the NSE on Thursday, December 26, after the company announced the opening of over 3,200 new outlets.

In a filing to the stock exchanges on December 25, Ola Electric Mobility said that the company has expanded its network to 4,000 stores nationwide, registering a fourfold increase from the total number of stores.

With this expansion, the company aims for deeper penetration and higher EV adoption in small towns beyond the Tier-I and Tier-II cities, as per the stock exchange filing.

“One of the world’s most significant expansions of the EV footprint, bolstering access, growth, and adoption in the country, Ola Electric cements its leadership in the space. With the launch of 3,200+ new stores co-located with service facilities, the company is committed to driving large-scale EV adoption enabling deeper penetration beyond tier-1 and tier-2 cities to almost every town and tehsil across India,” the company said.

The company’s aggressive expansion comes amid rising complaints over service issues related to its e-scooters. The expansion is expected to address the customer complaints while boosting its footprint in smaller towns.

The company’s aggressive expansion comes amid rising complaints over service issues related to its e-scooters. The expansion is expected to address customer complaints while boosting its footprint in smaller towns after this expansion.

The release stated, “The company is committed to driving large-scale EV adoption, enabling deeper penetration beyond tier-1 and tier-2 cities to almost every town and tehsil across India. “

The company has been facing rising complaints of dissatisfaction among customers over the availability of after-sales service. Ola Electric has faced customers’ anger over social media platforms and at stores over poor after-sales services. A government agency had also asked the company to explain poor service to customers.

The aggressive expansion will likely address customer dissatisfaction with Ola’s services and improve its local footprint, mainly in smaller towns.