Ola Electric, the electric vehicle arm of Indian ride-hailing major Ola, halted production of its e-scooters at its “Future Factory” for nearly a week earlier this month, Economic Times reported citing sources.
Ola Electric said the decision was part of an annual maintenance exercise and for installing new machines at the plant.
The report, however, said the move was aimed at clearing inventory, as the company has about 4,000 units of its e-scooters lying at the plant. This is in addition to “several thousands of units” that are ready for shipping to customers who pre-booked its e-scooters.
Ola Electric has come under scrutiny after multiple customer complaints about the quality of its products. In April, the company recalled more than 1,000 units of its electric scooters after incidents of fire.
Additionally, Ola is reportedly laying off nearly 1,000 staff across its mobility, hyperlocal, fintech, and used-car businesses. According to a report, Ola plans to double down on its electric vehicle unit and “aggressively” hire for positions in the unit.
That said, the company earlier this month said it will invest US$500 million to set up a battery innovation center (BIC) in Bengaluru.
The electric vehicle arm is looking to hire about 800 workers, the report added.
See also: The race to mine lithium is on
Editing by Miguel Cordon
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