Ola Electric faces government inquiries over registration discrepancies

Ola Electric on Friday said it has received emails from the ministries of heavy industries and road transport, inquiring about discrepancies in vehicle registrations and media reports on non-compliance with trade certificate requirements.

According to the Vahan portal, only 8,652 vehicles from the electric two-wheeler maker were registered in February, while the company has reported sales of 25,000 in regulatory filings, leading to discrepancies between its reported sales figures and government data.

Ola Electric also said it has received notices in four states regarding trade certificates for some of its stores.


The registration discrepancy arose due to what the company called a "temporary backlog" caused by ongoing negotiations with vendors handling vehicle registrations, according to a stock exchange filing on Friday.

Ola Electric added that the backlog is being cleared, with daily registrations already exceeding 50% of its average daily sales over the past three months. As of the latest update, 40% of February's backlog had been resolved, with full resolution expected by the end of March 2025.

The company said it is in the process of responding to the government’s inquiries but clarified that no regulatory or legal proceedings are currently underway.

Earlier, the Bhavish Aggarwal-led firm said its renegotiations with vehicle registration service providers, including Rosmerta Digital Services and Shimnit India, had impacted February registrations. On March 15, Rosmerta Digital Services filed a plea to initiate insolvency proceedings against Ola Electric Technologies over alleged payment defaults.

Over the past year, Ola Electric has been losing market share to rivals such as Bajaj Auto, TVS Motor and IPO-bound Ather Energy.

Earlier this month, the company said it expects its automotive business to turn Ebitda positive in the April-June quarter, driven by cost-cutting measures which are projected to save around Rs 90 crore per month.

The company’s net loss widened 50% year-on-year to Rs 564 crore in the October-December quarter, while operating revenue declined 19%.

Since its listing in August 2024, Ola Electric’s stock has declined nearly 65% from its peak. On Friday, its shares closed at Rs 56, up 8.4% from the previous day’s close.