Ola Electric Shrinks Store Network to 550 Amid EV Market Share Drop

In response to decelerating demand and declining market share, Ola Electric is allegedly preparing for yet another massive reduction in its physical store footprint. Several news agencies have reported that by the end of March, the corporation plans to reduce its shop network to approximately 550 stores. Following a previous expansion of their offline footprint to roughly 4,000 locations across India, the Bhavish Aggarwal-led company has announced a planned reduction. As part of a larger strategy reset, the company revealed in its most recent quarterly report that it has already cut the number of operational outlets to approximately 700.

Slowed Growth Rate Led to Reduction of Ola Electric Stores

According to the sources, the corporation went through some significant internal changes during the December quarter. The company's decision to restructure its retail network was based on a number of factors, including a slowdown in the uptake of electric vehicles and the need to strengthen service operations.

According to the news source, Ola Electric has made changes to its operating strategy and cost structure with an eye toward long-term stability instead of short-term sales levels. A number of stores in various regions have already closed their doors, and workers at some of those stores have been requested to depart.

The difficulties encountered are mirrored in the company's financial performance. Comparing the same period last year to this year, it had a net loss of INR 487 crore for the quarter ending December 31, 2025. There was a precipitous 55% annual decline in operational revenue, to INR 470 crore.

Ola Electric Losing its Dominance in EV Segment

The delivery of vehicles also fell sharply. Electric two-wheelers had a 61% decline in sales to 32,680 units sold during the quarter compared to the same period last year. According to Vahan portal registration statistics, the company's share of the electric two-wheeler market has been steadily declining. From almost 26% a year ago, its proportion fell to 6.3% in January. Sales dropped even lower in the first half of February, to 2,575 units, reducing its market share to about 4.2%. This once-dominant carmaker is now in second place, behind both long-standing competitors like Bajaj Auto and Hero MotoCorp and up-and-coming ones like Ather Energy. Over the past year, the business has also been the target of regulatory investigations.

Consequently, certain state authorities have issued closure orders for specific showrooms and service centres. According to the authorities, the brand was running its business without the necessary commercial certificates. The corporation indicated last month that approximately 5% of its employees might be impacted by a broader reorganisation plan.

About 175 out of 3,500 employees might feel the effects. Increasing automation in customer-facing processes and enhancing service quality are the firm's current priorities. Its redesigned service programme, it added, is now resolving more than 80% of repair enquiries the same day.