Ola Electric last week suspended electric scooter production at its plant in the Hosur district, Tamil Nadu, reportedly due to inventory pile-up.
According to a report by the Economic Times, production at Ola Electric’s ‘Future Factory’ was stopped on July 21 for about a week. While the company claimed that production had been suspended for annual maintenance and the installation of new machines, three people familiar with the development told the publication that inventory pile-up was the actual reason behind the temporary closure.
As per the report, Ola Electric had 4,000 scooters piled up in the factory, in addition to the thousands that are ready to be shipped to customers who had pre-ordered. Further, ET also reported that at the time of the plant’s closure on July 21, it was only producing 100 units a day against a capacity of 600 units a day.
Ola Electric began trial production at ‘Future Factory’ in October last year, with regular production beginning in December. While the factory was expected to help Ola Electric meet the 150,000 pre-orders it had taken for its electric scooters, negative customer feedback resulted in a high number of cancellations, thereby contributing to the reported inventory pile-up.
Deccan Herald could not independently verify the report.