Bengaluru, 12th March 2025
Bhavish Aggarwal, CEO and Co-Founder, has set sights on achieving EBITDA positivity in the upcoming quarter.
Despite the company reporting an increase in losses amounting to Rs 564 crore for the December quarter, compared to Rs 376 crore during the same period last year, the company has informed to the stock exchanges that it has implemented various cost-saving measures.
These initiatives have resulted in a monthly cost reduction of Rs 90 crore, with the financial benefits expected to be fully realized by April 2025. “The EV business will reach EBITDA positivity next quarter. Initially, many believed that EVs would never turn a profit,” Aggarwal stated on the social media platform X.
Addressing the decline in performance, he noted that the registration process has been streamlined, with daily registrations returning to levels seen in the previous month. The company anticipates clearing all backlogs within the next 10 to 15 days, as order delivery times have been significantly reduced from 10-12 days to 3-4 days, and in some instances, even same-day delivery is possible.
In a regulatory filing, the company announced the successful completion of its Network Transformation and Opex Reduction Program, which was initiated in November 2024 to lower costs and enhance customer experience.
Following its initial workforce reduction in November 2024, where approximately 500 employees were let go, the company has recently laid off an additional 1,000 employees across its sales, distribution, and marketing divisions. “Alongside cost savings, these adjustments have led to a decrease in average vehicle inventory from around 35 days to 20 days and have shortened customer delivery times from 12 days to 3-4 days,” the company reported.
Furthermore, the company indicated that the transformation of its vehicle registration process is nearing completion. Daily registrations have shown significant improvement, exceeding 800 per day and surpassing the average daily sales figures for January and February 2025. “With all components of the Network Transformation and Opex Reduction Program now implemented, the company has fulfilled its commitment to operational excellence,” it concluded.
