Abstract

The case “Is Ola Electric Skidding off the Road in India’s Automobile Market?” talks about how the dream of India-based Electric Vehicles (EV) company Ola Electric Mobility Pvt. Ltd. (Ola Electric) of disrupting the Indian two-wheeler market suffered a setback after unexpected fire accidents involving its Electric-Two-Wheelers (ETWs). The case starts out by mentioning the reasons why the Indian two-wheeler market was considered ripe for disruption and the measures that Ola Electric was taking to capture market share in the emerging EV sector. It then talks about the market response to Ola Electric’s new ETWs and the company’s future plans. The immediate aftermath of the ETW fire incidents is described, along with the measures being taken by the Government of India (GoI) to ensure that EVs were safe. The case mentions the ETW market scenario and how the ETW fire incidents could impact it negatively. Can Ola Electric overcome the multiple challenges it faces and reach its vision of being the future of mobility?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the need for disruptive innovation
• Analyze the business strategy to be undertaken by new market entrants of an emerging market sector
• Examine the factors that cause new products to fail
• Scrutinize the impact of a new product failure on a company’s prospects
• Design a strategy to build customer confidence

Keywords

Electric Vehicles; Automobile Industry; New Product Development; Disruptive Innovation; Product Diffusion; Buyer Decision; New Market Segment; Communication Strategy; Consumer Behavior; Business Environment; Government Regulation; Customer Confidence; Market Positioning; Brand Management; Product Flaws