Ola Electric Ltd has recently come under the scanner in Pune, as local authorities initiated action against several of its stores for regulatory non-compliance. The development has raised concerns over operational practices at some of the company’s outlets.
Share Price Movement
During Wednesday’s trading session, Ola Electric Mobility Ltd‘s share price hit an intraday high of Rs.51.30 apiece, rising 1 percent from the previous close of Rs.50.88 apiece. The shares retreated since then and closed at Rs.50.04 per share. Since its listing on the secondary market, the shares have fallen by over 45 percent.
Investigation Reports
In Maharashtra, the Pune Regional Transport Office (RTO) has taken action against 17 Ola Electric stores in the city, conducting raids and issuing official notices. These stores were allegedly found selling new vehicles without the necessary permissions and were operating without valid trade certificates. Such practices constitute violations of tax and insurance regulations, raising serious concerns about regulatory compliance at these outlets.
Ola’s Response
Ola Electric Mobility Ltd. has informed the Maharashtra government that it is currently in the process of obtaining trade certificates for all its stores across the state.
In a letter dated April 5 addressed to Maharashtra’s Joint Transport Commissioner Ravi Gaikwad, the Bengaluru-based EV manufacturer stated, “We have rapidly expanded our store network, and as we work to streamline operations, we are ensuring that each store secures the necessary licenses and approvals, including trade certificates from the respective jurisdictional RTOs.”
The company further emphasized its commitment to regulatory compliance, noting, “We are fully committed to adhering to legal requirements and have either already applied for or are in the process of applying for all relevant licenses and approvals, including trade certificates for our outlets.”
Recent Launches
Ola Electric has launched its new electric motorcycle series, the Roadster, featuring models like the Roadster X and Roadster X+, with prices starting at Rs.84,999 and Rs.1,14,999, respectively. The company unveiled these production-ready models on February 5, 2025, aiming to expand its electric vehicle lineup beyond scooters.
Financial Performance
The company reported consolidated revenue of Rs.1,045 crores in Q3 FY25, representing a 20 percent decline from Rs.1,296 crores in Q3 FY24. The company posted an increase in net loss to Rs.564 crores for the quarter, compared to Rs.376 crores in the corresponding period last year, marking a notable deterioration in bottom-line performance.
About the Company
Ola Electric Mobility is an Indian electric vehicle (EV) manufacturer focused on providing sustainable, eco-friendly transportation solutions. The company, a subsidiary of Ola Group, produces electric scooters and aims to revolutionize the Indian mobility market with cutting-edge technology and a robust charging infrastructure.
Written by – Siddesh S Raskar
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