New Delhi: Ola Electric, one of India’s top electric scooter brands, is facing serious trouble with transport authorities. The company has been rapidly opening showrooms across the country, but many of them reportedly don’t follow key legal rules. According to India’s Motor Vehicles Act (MVA), every auto showroom that keeps unregistered vehicles must have a trade certificate on display. But investigations found that out of around 3,400 Ola showrooms, only about 100 had these certificates.
As a result, transport authorities in multiple states have raided Ola showrooms, shutting some of them down, seizing vehicles, and sending legal notices to the company. At least six transport officials are involved in investigating the issue.
Ola’s side of the story
Ola Electric has denied any wrongdoing, calling the allegations “wrong” and “biased.” The company claims it has all the necessary approvals for its unregistered vehicles, which are stored in distribution centers and warehouses. However, Ola has applied for trade certificates in some locations after receiving notices from transport departments.
Sales drop and stock crash
These legal troubles are adding to Ola’s existing challenges. The company has been losing market share to rivals like Bajaj Auto and TVS Motor and has also seen a big drop in sales. Its stock has taken a major hit, falling over 60% from its peak since its stock market debut in August 2024 and dropping 52% in the last six months.
More problems for Ola
On top of this, Ola is dealing with customer complaints about product quality and service delays. The launch of its electric motorcycles has been pushed back, and the company is also planning to lay off over 1,000 employees.
Despite all this, Ola remains hopeful. It aims to sell 50,000 units per month to break even, but February 2025 sales were only about 8,600 registered vehicles, far below the target.
Will Ola be able to bounce back? Only time will tell.
