Ola Electric has eliminated its regional warehouses across India and will use its 4,000 retail stores for maintaining vehicle inventory, spare parts, accessories, and last-mile deliveries. This strategic move is expected to enhance EBITDA margins by nearly 10%, improve inventory management, and accelerate customer deliveries.
In its accelerated profitability drive, Ola Electric is redesigning its distribution network and optimizing the vehicle registration process, aiming for ₹30 crore in monthly savings. The company has renegotiated contracts with vehicle registration agency partners to streamline processes and reduce costs. Although this temporarily affected registration numbers on the VAHAN portal in February, actual sales remained unaffected.
Internal sources indicate that the company is on track to sell over 25,000 units this month, maintaining its leadership in the EV two-wheeler segment. A senior executive noted that the front-end network redesign is a fundamental shift in inventory management and customer service, driven by the company’s rapid expansion.
