Ola Electric Surges 9% After Addressing Feb Sales Data And Denying Regulatory Concerns – News18
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Ola Electric said the backlog was not due to internal operational challenges and was being resolved steadily.
Ola Electric Scooter. (File photo)
Ola Electric Mobility shares resumed their upward momentum in Friday’s trading session following a brief pause. The stock surged by 9.46%, reaching a day high of Rs 56.55. This rebound came after the electric vehicle (EV) company clarified that the temporary dip in February sales was due to ongoing discussions with vendors responsible for vehicle registrations.
Ola Electric, led by Bhavish Aggarwal, clarified that it had received inquiries from the Ministry of Road Transport and Highways (MORTH), the Ministry of Heavy Industries, and authorities from four states, and is actively addressing these requests. The company emphasized that the temporary backlog in February was not due to internal operational issues and is being steadily resolved. Ola Electric noted that daily registrations have now surpassed 50% of its average daily sales over the past three months, with 40% of the February backlog already cleared. The company expects full resolution of the backlog by the end of March 2025.
Addressing allegations of misinformation, the company stated, “This is a straightforward case of a temporary registration backlog, yet certain media outlets and vested interests have deliberately misrepresented it as a regulatory issue through misinformation and smear campaigns.” Ola Electric pointed out that the reports began circulating after the company ended contracts with two national vendors who had previously handled vehicle registrations. The company added that a coordinated effort had been made to create confusion and unnecessary scrutiny, stressing that its focus remains on resolving the backlog efficiently and serving customers with transparency and reliability.
In a separate exchange filing, Ola Electric confirmed receiving information requests from the Ministry of Heavy Industries on March 11, 2025, and from MORTH on March 18, 2025. The company clarified that no regulatory or legal proceedings are currently underway against it.
Meanwhile, media reports have indicated that Ola Electric is under regulatory scrutiny due to discrepancies between its reported sales and actual vehicle registrations. Ola Electric reported selling 25,000 electric scooters in February 2025, but data from the government’s Vahan portal showed only 8,600 registrations for the same period.
As part of the ongoing inquiry, the Maharashtra Regional Transport Office (RTO) conducted inspections at several Ola Electric showrooms, including in Pune, to verify vehicle documentation and ensure compliance with trade certification regulations. Following the inspections, 36 scooters were seized in Mumbai and Pune for non-compliance. Regulatory actions have extended beyond Maharashtra, with reports suggesting that several Ola Electric outlets in Punjab have been shut down, and RTO authorities in Jabalpur issued notices after unregistered scooters were found being sold without valid trade certification.
This marks the second instance of regulatory scrutiny for Ola Electric, which had previously faced warnings from the Securities and Exchange Board of India (SEBI) over lapses in disclosures. As a key player in India’s electric two-wheeler market, Ola Electric competes with companies like Ather Energy, Bajaj Auto, and TVS Motor. Despite rapid expansion, the company has faced criticism over transparency, customer service, and its limited service network.
In its October–December quarter, Ola Electric reported a loss of Rs 564 crore, attributed to weak demand and aggressive discounting. Despite cost-cutting efforts, the company’s stock has underperformed since its listing, raising concerns about its financial health and long-term viability.
