Ola Electric Explains Temporary Registration Backlog Cause for the February Sales Disparities

In response to recent media coverage of their February 2025 sales numbers, Ola Electric denied any regulatory concerns and provided explanation on what it refers to as a temporary registration bottleneck. The company stated in a statement issued on March 21 that it is working to alleviate the backlog that resulted in disparities in vehicle registration data and that sales are still high. Ola claims that this backlog is being cleared up and that it was not brought on by any internal operational problems. The company's daily registration numbers have now surpassed 50% of its typical daily revenues over the last three months. According to the most recent information, 40% of the backlog from February has already been cleared, and Ola Electric anticipates that the problem will be fixed completely by the end of March 2025.

Ola Claims Current Situation has been Misrepresented

Additionally, Ola Electric claimed that some "vested interests" and media outlets had distorted the situation as a regulatory matter.  In a press release, the company defined the backlash as a "coordinated effort to create confusion and trigger unnecessary scrutiny."  This escalated after the company terminated contracts with two nationwide vendors that were in charge of its registration process as part of Ola Electric's strategy to streamline operations and drive profitability.  The business reaffirmed its dedication to effectively clearing the backlog and upholding openness with clients and authorities.

Tough Time for Ola Electric

According to a media agency, Ola Electric Mobility Ltd., under the leadership of Bhavish Aggarwal, is laying off over 1,000 staff and contract workers in an attempt to reduce the company's growing losses. As the electric two-wheeler (2W) manufacturer goes through a significant reorganisation, the employment cutbacks impact several departments, including procurement, fulfilment, customer relations, and charging infrastructure. In less than five months, this is the company's second round of layoffs. About 500 workers were let go by Ola Electric in November 2024, and the most recent round of layoffs represents more than 25% of the company's 4,000-person employment as of March 2024. However, since they are not included in the company's formal disclosures, contract workers are not included in this statistic.

A representative for the company told the media outlet that Ola had automated front-end processes to boost customer satisfaction, cut expenses, and increase margins while removing unnecessary positions to increase efficiency. They did not; however, state how many employees were impacted. The layoffs occur as Ola Electric, which is supported by SoftBank, faces several difficulties. In the December 2024 quarter, the company's net loss increased to INR 564 crore from INR 376 crore in the same period the year before. The business has also had to contend with increasing competition, which has caused it to lose its top spot as India's largest seller of electric scooters. According to government data from December 2024, TVS Motor Co. and Bajaj Auto Ltd. both surpassed Ola Electric as the market leaders. Ola Electric argues that it is still a major player in spite of these failures. The business recorded sales of more than 25,000 units in February 2025, gaining a 28% market share. Aggarwal had set a monthly sales goal of 50,000 units to reach breakeven in earnings before interest, tax, depreciation, and amortisation (EBITDA), but this is well below that amount.