Ola Electric Stock Drops 3% As CMO And CTO Resign Amid Leadership Shifts

Ola Electric Mobility, the Bengaluru-based electric vehicle manufacturer, witnessed a sharp decline in share price by over 3% to ₹87.35 during early trading on Monday, December 30, following the resignation of two key executives. The company announced the immediate departure of Chief Marketing Officer (CMO) Anshul Khandelwal and Chief Technology and Product Officer (CTO) Suvonil Chatterjee, effective from Friday, December 27, citing personal reasons.

Leadership Changes Amidst Company Challenges

Both Khandelwal and Chatterjee had significant roles in Ola Electric’s operations. Anshul Khandelwal joined the company in 2019 after Ola Electric acquired Foodpanda, where he was Head of Marketing. He took over as CMO in 2022. Suvonil Chatterjee, who joined Ola Electric in 2017 as Head of Design, was promoted to CTO in 2021, marking a notable progression in his career. Their resignations signal deeper organisational shifts, following other high-profile departures in 2024, including the exit of company secretary and compliance officer Pramendra Tomar, as well as Chief People Officer N Balachandar.

Ola Electric’s Restructuring Amidst Expanding Operations

These senior-level resignations come at a time when Ola Electric is undergoing significant restructuring, which included laying off 500 employees last month. This restructuring is aimed at bolstering the company’s growth amid its ambitious expansion plans. Earlier this week, Ola Electric revealed its strategy to significantly increase its retail network by adding 3,200 stores to its existing infrastructure in just one day, with an overall goal of reaching 4,000 stores. The move is designed to address growing customer service concerns and reinforce the company’s presence in the competitive EV market.

Regulatory Scrutiny and Customer Concerns

However, the company is also facing heightened scrutiny from regulatory authorities. The Ministry of Heavy Industry has initiated an audit of Ola Electric’s service centres, while the Central Consumer Protection Authority issued a notice in October 2024 over alleged violations related to customer rights, misleading advertising, and unfair trade practices. Despite these challenges, the company is pushing ahead with its expansion and efforts to consolidate its market position in the rapidly growing EV sector.

A Time of Uncertainty for Ola Electric

The dual resignation of its senior executives, combined with the organisational changes, regulatory challenges, and market concerns, marks a challenging period for Ola Electric. As the company navigates these turbulent waters, its next steps in addressing leadership voids and improving customer satisfaction will be critical to its future growth and success.