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The entire financial impact of these measures is expected to be felt from April 2025. The major components of the program included a major change in the company's distribution network. Ola Electric closed all regional warehouses, and opted for direct factory shipping of vehicles, spare parts and accessories in its store.
The shares of Ola Electric Mobility (Ola) had recently seen a decline. At the same time, Ola's shares are now increasing. Ola's shares rose by 1.55% to Rs 51.70, after the successful completion of its network transformation and Opex Reduction Program, a company-wide initiative launched in November 2024.
This program, launched with the aim of cutting cost cuts and customer experience, has led to financial and operational reforms. The initiative has reduced permanent cost of Rs 90 crore per month, clearing the way for Ola Electric to achieve the automotive segment Ebitda Breakven in the first quarter of the financial year 2026, these measures are expected to feel the full financial impact from April 2025. The major components of the program included a major change in the company's distribution network. Ola Electric closed all regional warehouses, and opted for direct factory shipping of vehicles, spare parts and accessories in its store. The automation of registration and other procedures has saved considerable saving from this systematicization with automation and productivity growth in sales and service networks.
In addition to cost reduction, this program has made significant improvements in operational efficiency. The average vehicle inventory has come down from about 35 days to 20 days, and the customer delivery time has come down from 12 days to 3-4 days. The company is also close to completing its vehicle registration process change. The daily registration has increased to over 800, which has crossed the average daily sales figures of January and February 2025.
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