Ola Electric is under strict regulatory measures after it was accused of exaggerating its market share in sales in February by including reservations of electric scooters and motorcycles which have not been launched yet.
In a letter dated March 21 to the Ministry of Road Transport and Highways, Ola Electric told the ministry that 10,866 Gen3 e-scooter and 1,395 Roadster X motorcycle bookings were reported in its sales for February.
Ola began shipping Gen3 e-scooters a month ago, but it has not even begun shipping Roadster motorcycles yet.
Roughly half of the 25,207 “confirmed orders” in February belonged to these two categories. As per the article, the ministry thus wrote to Ola on March 31 seeking an explanation of its monthly sales.
Ola has been ordered by the ministry, as reported, to revise the February 2025 sales numbers to exclude the cars invoiced during the month. Also, it warned the company of “adverse action” in case it failed to respond to the letter within seven days.
As per the report, the Center can decide whether Ola had broken any local regulations or shortchanged its sales despite not yet initiating a formal probe into the matter.
Ever since the second half of FY25, the market share of Ola Electric has been consistently falling. Its market share in EV two-wheelers actually fell to 12% in February 2025 before rising slightly to 18% in March 2025.
This adds to Ola’s existing problems, the most crucial of which is likely increasing losses. In the third quarter of FY25, the electric mobility firm’s consolidated net loss rose 50% year over year (YoY) to INR 564 Cr, as operating revenue dropped 19% YoY to INR 1,045 Cr.
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