Ola Electric's February Sales Included Unlaunched Models, Raises Big Question on Claims

In order to increase its market share, Ola Electric, run by Bhavish Aggarwal, is facing severe regulatory action. The brand has recently reported to have included bookings for electric motorcycles and scooters that haven't even been released yet in its February sales. According to a media report, Ola Electric stated in a letter dated 21 March to the Ministry of Road Transport and Highways that 10,866 Gen3 e-scooter and 1,395 Roadster X motorcycle reservations were included in its February sales data. Ola started shipping Gen3 e-scooters last month, but it hasn't even started shipping Roadster motorcycles yet. Approximately half of the 25,207 "confirmed orders" in February fell into these two groups. According to the report, the ministry therefore wrote to Ola on March 31 to ask for an explanation of its monthly sales. It should be mentioned that, according to data from the Vahan Portal, Ola claimed to have sold 25,000 units in February, but only 8,600 of those vehicles were registered. In the past, the business had referred to it as a "clear case of temporary backlog" brought on by discussions with its vendors that handle vehicle registrations.

Centre Yet to Launch Formal Investigation

As per the report, the Centre may investigate Ola's violations of local regulations or misreported sales. Ola Electric announced it had "nearly cleared" its February backlog in a statement issued on April 1. The firm further stated that it is anticipating clearing the remaining backlog for the February–March period by the end of this month. According to reports, Ola has been instructed by the ministry to update the February 2025 sales figures to only include the units that were invoiced in that month. Additionally, it threatened the business with "adverse action" if it didn't reply to the letter within seven days. Ola Electric, which is already under regulatory examination for allegedly running stores without trade permits, has suffered yet another setback. Maharashtra RTO officials reportedly inspected Ola showrooms throughout the state last month. Officials further impounded scores of automobiles for noncompliance during a discrepancy between the company's declared sales figures and real vehicle registrations in February.

Maharashtra is simply not the only state seeing the crackdown. According to reports, Ola Electric closed all of its showrooms in Punjab, ostensibly to escape criticism from the government for trade certification infractions. Ola received notifications from Madhya Pradesh RTO officials for allegedly selling unregistered scooters without legitimate commercial certifications. The Central Consumer Protection Authority (CCPA) is also looking into the EV manufacturer due to claims of poor car sales, delays in servicing and delivery, and other consumer concerns.

Recent Financial Outlook of Ola

Ola Electric reaffirmed that it slashed its monthly cash burn by INR 90 Cr due to cost-cutting measures in its FY25 investor presentation, which was made public on April 1. The company also stated that it anticipated reaching EBITDA breakeven in the automotive segment in Q1 FY26. Despite fierce competition from companies like Bajaj Auto and TVS Motor, the business is proud to have maintained its leading position in the electric two-wheeler industry in FY25 with 344K registrations and 30% market share. But it's crucial to remember that since the second part of FY25, Ola Electric's market share has been steadily declining. Its market share in EV two-wheelers actually decreased to 12% in February 2025 before slightly increasing to 18% in March 2025.