Ola Electric to save Rs 90 Crore per month by layoffs, Reduction in cost

Ola Electric, one of the large electric two-wheeler companies, has started saving about Rs 90 crore per month due to reduction in the spending of workers, services and warranties of workers and changes in network. In the last few months, the company has faced difficulties due to customers’ complaints about service.

Ola Electric’s Business Head, Vishal Chaturvedi NDTV Profit Told that the reduction in cost will save the company about Rs 90 crore per month. Earlier, the company had said that it has successfully implemented the plan of changes in its network and reduction in operational experience. Ola Electric reported that some part of this savings could be seen in this quarter. Chaturvedi said that about 4,000 stores of the company contribute to sales.

It is also the first electric two-wheeler maker to get subsidy under the Central Government’s production-linked incentive (PLI) scheme. This scheme was launched to promote the localization of automotive technology in the country. Recently, Ola Electric told the stock exchange in a filing that its subsidiary Ola Electric Technologies have received subsidy of Rs 73.74 crore under the PLI scheme of automobiles and auto components from the Ministry of Heavy Industries. The duration of this scheme is five years old and a budgetary allocation of Rs 25,938 crore was made for it. Earlier in this scheme, big automobile companies Tata Motors and Mahindra & Mahindra had received subsidy.

For cost cuts, Ola Electric has prepared to process the vehicle itself. Earlier, the company had outsourced the process of registration of vehicles. The company has formed a team to process the registration of vehicles. Ola Electric estimates that this cost will be reduced to about 20 percent. For registration of an electric vehicle of the company, Vendor Rosmerta is paid Rs 1,500-1,800. Ola Electric estimates that this expenditure will be reduced to about 300 rupees. Delivery of the company’s electric motorcycle may be started soon.