Ola Electric to cut store network to 550

Bengaluru | Mumbai: Ola Electric plans to reduce its physical store count further to about 550 by March-end, amid a sharp decline in market share and mounting operational challenges, according to people aware of the development.

The move marks a deeper pullback for the Bengaluru-based electric vehicle (EV) maker, just a year after it announced the expansion of its retail network to 4,000 stores nationwide.

In its latest quarterly update, Ola Electric said it had already pared its store network to 700 outlets as part of what it described as a "structural reset".


"Q3 FY26 marks a structural reset for Ola Electric. As EV penetration growth has slowed and our service execution has required strengthening, we chose to realign our retail footprint, cost structure, and operating model to a sustainable steady state by fixing the fundamentals and not optimising for short-term volume," the company said in its shareholders' letter.

The company has shut stores across the country, with several employees at those locations asked to leave, said people in the know.

Queries sent to Ola Electric did not elicit a response till press time.

For the quarter to December 31, 2025, Ola Electric reported a net loss of ₹487 crore, an improvement from ₹564 crore a year earlier. Revenue from operations fell 55% year-on-year to ₹470 crore.

The company delivered 32,680 electric two-wheelers during the quarter, down 61% year-on-year.

According to Vahan website, Ola Electric's market share in the electric two-wheeler segment fell to 6.3% in January from about 26% a year ago. In the first 18 days of February, the company sold 2,575 vehicles, further reducing its market share to about 4.2%.

Ola Electric, which was the market leader in the segment last year, currently trails behind legacy companies such as TVS Motor, Bajaj Auto and Hero MotoCorp, as well as new-age players like Ather Energy.

Several showrooms and service centres of Ola Electric were earlier found operating without valid trade certificates and were asked to shut down by government authorities, especially in states like Maharashtra.