Ola Electric Dismisses Sales Slump Allegations
Ola Electric Mobility Ltd has denied reports suggesting a significant drop in its February 2025 sales, labelling such claims as misleading. The company clarified that a backlog in vehicle registrations, rather than a downturn in demand, is responsible for the perceived slump. According to Ola Electric, the backlog arose due to ongoing negotiations with vendors handling the registration process. The company emphasized that its daily registrations have now recovered, exceeding 50 per cent of its three-month daily sales average. Additionally, 40 per cent of the backlog has already been resolved, with the remainder expected to be cleared by the end of March 2025. Ola Electric reassured stakeholders that its sales performance remains robust.
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Regulatory Scrutiny and Company’s Response
The clarification follows intensified scrutiny from various regulatory bodies. Ola Electric acknowledged receiving information requests from the Ministry of Heavy Industries on March 11 and the Ministry of Road Transport and Highways on March 18. Additionally, the company has been served notices by authorities in four states concerning trade certificates for select stores. The inquiries primarily focus on discrepancies between vehicle registrations recorded on the VAHAN portal and the sales figures reported by Ola Electric in its regulatory filing on February 28, 2025. The company stated that it is actively addressing these queries and is committed to full compliance with regulatory requirements.
Allegations of Misrepresentation and Ola’s Stand
In its statement, Ola Electric accused certain media reports and external parties of deliberately misinterpreting the situation to create confusion. The company linked the intensified scrutiny to its decision to discontinue contracts with two major vendors responsible for managing the registration process. Ola asserted that this move was part of its broader strategy to optimize operations and enhance profitability. It described the backlash as a “coordinated effort” to fuel unnecessary controversy. Reaffirming its commitment to transparency, the company assured customers and regulators that it is taking swift action to resolve the registration backlog and maintain smooth business operations.
