Aside from EVs, the company also operates in the battery cell manufacturing business.
“Our @OlaElectric EV business will be EBITDA positive next quarter. When we started many thought EVs will never be profitable. Kudos to the Ola Electric team for working hard to make this happen more than a year ahead of analyst estimates,” Aggarwal said in a post on X.
In a stock exchange filing, Ola Electric said it has finished implementing its Network Transformation and Opex Reduction Program, due to which it has reduced costs by Rs 90 crore per month.
As part of the initiative, the company introduced changes to its distribution network, such as shutting regional warehouses; shipping vehicles, spare parts and accessories from the factory directly to stores; and automating registration and other processes. It also undertook productivity improvements in the sales and service network.
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The company said these changes have resulted in reducing average vehicle inventory from approximately 35 to 20 days, and reduced delivery time for customers from 12 days to 3-4 days.
