- Ola Electric says discrepancies are due to a backlog in registrations after a recent government probe.
According to recent reports, government agencies have been probing Ola Electric for discrepancies between sales and registrations. However, Ola Electric, in reply to the initiation, stated that the mismatch between its vehicle sales and registrations in February was due to a ‘temporary’ backlog in registrations. The EV manufacturer has attributed this backlog to ‘negotiations with its vendors.’
The Heavy Industries Ministry had instructed the Automotive Research Association of India (ARAI) to investigate the discrepancy between Ola Electric’s claimed sales figures and actual vehicle registrations, alongside numerous consumer complaints about the electric two-wheeler manufacturer. A report is expected within 15 days.
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In February, Ola Electric registered 8,652 vehicles on the Vahan portal, while it reported sales exceeding 25,000 units for the same month. By March 20, the total number of registrations rose to 11,781 on the portal.
Ola Electric benefits from the FAME II and PM E-DRIVE schemes, with ARAI granting its eligibility certificate—a certification and testing agency under the ministry’s control.
Moreover, the company is facing scrutiny from various authorities, including the consumer rights regulator CCPA, which has launched investigations into complaints about alleged service deficiencies and problems with the company’s electric two-wheelers.
These insolvency proceedings occur as Ola Electric Mobility plans to cut approximately 1,000 jobs across various departments, part of a restructuring effort aimed at curtailing losses.
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This week, shares of Ola Electric Mobility dropped more than 6 per cent, hitting a record low after the company disclosed that one of its subsidiaries is under an insolvency petition from a creditor. The stock declined by as much as 6.2 per cent to 47.4 rupees around 10:01 a.m. IST, marking a nearly 38 per cent decrease from its IPO price of 76 rupees in August 2024.
Rosmerta Digital Services—a vehicle registration service provider and creditor of Ola Electric Technologies—filed the insolvency petition, citing payment defaults, but the company did not reveal the exact amount involved in the default.
(With inputs from Reuters)
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First Published Date: 21 Mar 2025, 08:35 AM IST
