Ola Electric is now dealing with major operational issues while resolving misinterpretations about regulatory matters. The company has stated that it is clearing a backlog of vehicle registrations at a fast pace, which had been temporarily affected because of negotiations with registration agencies.
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Regulatory Misrepresentation: The media and interested parties have misrepresented the scenario as a regulatory one, whereas Ola Electric explains that the backlog was mainly driven by negotiations with suppliers for vehicle registrations.
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Backlog Clearance: The February backlog is being cleared quickly, with plans to clear all registrations by March end 2025.
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Current Registration Status: Up to March 20, 2025, Ola Electric has registered around 11,781 vehicles on the Vahan portal, against reported sales of more than 25,000 units in February.
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Sales Performance: Ola Electric's sales continue to be robust, with daily registrations now averaging about 1,500, almost double the average daily sales of 800.
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Government Communications: There have been mails from the Ministry of Heavy Industries and the Ministry of Road Transport for discrepancies in sales and registration.
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Investigations in Progress: The government has asked ARAI to investigate complaints involving sales figure discrepancies and consumer grievances against Ola Electric.
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Restructuring: As a consequence of these difficulties, Ola Electric is experiencing a restructuring drive that involves reduction of around 1,000 positions across several functions.
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Notices Received: The firm has received notices in four states about trade certificates for its stores as part of ongoing compliance efforts.
Ola Electric is actively addressing these issues while continuing to remain committed to service and operational improvement.
Sources: Business standard, The Week, Economic Times, Upstox