Maharashtra authorities are reportedly preparing to shut nearly 90 percent of Ola Electric’s inspected EV showrooms in the state, citing the absence of mandatory trade certificates under India’s Motor Vehicles Act. Of the 432 outlets reviewed, only 44 were found compliant; around 388 have been ordered closed, a report from Mint suggests. The move threatens to curtail approximately 12 percent of Ola’s national sales, as Maharashtra remains the country’s largest electric two‑wheeler market.
The closure follows earlier regulatory action in April, when 121 outlets were flagged for non‑compliance—75 were shut and nearly 270 others issued show‑cause notices. Local RTOs were instructed to disable login IDs of non‑compliant stores and report status back to the commissioner within a day.
Ola Electric has rejected the claims as “misplaced” and stated it is actively engaging with regulators to resolve specific concerns. The company did not elaborate on corrective actions or timelines .
These developments compound wider headwinds confronting the Bengaluru‑based EV maker. Ola’s once‑dominant domestic market share has shrunk to about 20 percent, down from nearly 50 percent in mid‑2024, with rivals TVS Motor and Bajaj Auto gaining ground.
Additionally, the company faces regulatory scrutiny over sales‑registration discrepancies, over 10,000 unresolved consumer grievances, a SEBI warning for disclosure lapses, and shareholder sell‑downs, including stake exits by Hyundai and Kia .
As Ola Electric navigates this unfolding crisis, timely resolution of compliance gaps and operational stabilisation will be central to regaining consumer and investor confidence in a highly competitive Indian EV market.
Alternatively, Ola Electric reported an increase in revenue for the quarter ending June 30, 2025 (Q1 FY26). The company’s revenue from operations rose 35.5 percent quarter-on-quarter to Rs 828 crore, compared to Rs 611 crore in Q4 FY25.
