According to our sources, Ola Electric halted production of its electric scooters at its plant in Krishnagiri, Tamil Nadu, for nearly a week, primarily because the company had an excessive amount of inventory.
Three people with knowledge of the situation have stated that the accumulation of inventory was the primary reason for the plant being shut down, despite the fact that the company has maintained that the plant was closed for annual maintenance and the installation of new machines.
Around 4,000 electric scooters have been stockpiled at the plant, which Ola Electric refers to as the “Future Factory.” When Ola Electric shut down the line on July 21, a source claims that they were only producing 100 units per day, despite the fact that their capacity is currently set at 600.
It has only been about eight months since Ola began production in earnest at the plant in Tamil Nadu.
The trial production began in October and regular production began in December.
“As is the case with the vast majority of automobile manufacturers, we subjected our production facilities to annual maintenance. This in no way should be construed as putting an end to production at any point. As a result, we want to make it clear that the aforementioned information is not accurate, as stated by an Ola spokesperson to us.
The company did not provide any additional information regarding its daily production and booking numbers. The length of the suspension was not specified in any further detail, but the statement insisted that it was only temporary.
Ola is eliminating 1,000 jobs in order to concentrate on electric: On Friday morning, we broke the news that Ola is in the process of terminating the jobs of approximately one thousand employees across all of its verticals.
According to executives who are actively involved in the recruitment process, the purpose of the restructuring exercise, which is expected to last for a few more weeks, is to increase Ola’s focus on its electric mobility business, for which it is hiring “aggressively.” The restructuring exercise is expected to last for a few more weeks.