Bangalore-based startup Ola Electric Mobility, with a stated ambition of building the world’s largest electric scooter factory, is scrambling to deliver on time. Firstly, the manufacturer delayed the initial deliveries of the e-scooter by two months till December. Now, a Bloomberg report appears to suggest that mass production could be pushed to January 2022. Adding to Ola’s concerns, there are complaints about the quality of e-scooters distributed on social media, though there is no way to check the veracity of these posts. ,
Ola Electric is reportedly producing around 150 vehicles a day but has collected orders of up to 90,000 vehicles from potential buyers, many of whom have made full down payments.
Ola Electric’s delivery crisis goes beyond supply chain disruptions related to COVID and its production processes’ reliance on imports – though that’s not to say there aren’t supply-side uncertainties due to global chip shortages and other COVID-related glitches. real complications. Yes, globally mixed industries are grappling with these disturbances. Still, these issues can’t be an excuse to falter on committed delivery and product quality – or go back.
Even in the specific case of Ola Electric, the problem appears to be of its own making. The question here is, has the company bitten off more than it could chew? Is it over-committed? Internal intervals appear to be at work here. Increasing the production of any new product in a short time is a big challenge. It is even more difficult to ensure consistent product quality. The urge to get the product out quickly is understandable. But the system is not good enough to deliver on the promise. An electric scooter consists of over 200 unique parts. Mechanical parts are specifically required to conform to precise specifications. Fitting them forcibly in the assembly line can hinder product quality. For a manufacturer, all these require coordination with multiple suppliers and there can be no shortcuts. Furthermore, fixing these issues means a lot of communication between Ola Electric and its suppliers. Also, the testing and verification process has to be super-perfect. Some of the complaints from buyers who say they have found the vehicle, if genuine, indicate that it is either a case of poor preparation or hasty delivery.
To save its image from damage, Ola Electric will have to demonstrate in the coming weeks that it is not about overly enthusiastic marketing hype, and that it has not let the challenges stand in the way of its lofty ambitions. Because, the big risk here is undermining consumer confidence in the nascent industry as a whole. Given the exigencies of the supply chain, it would be prudent for Ola Electric to offer more realistic delivery dates to the customers.
The lesson from Ola Electric’s woes is simple: Companies should avoid making big promises.
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