Ola Electric seems to not catch a break. First, the Bengaluru-based two-wheeler EV company saw a drastic decline in market share slipping from being the number one position to fourth. Now, the company is under scrutiny for regulatory violations under India’s Motor Vehicles Act (MVA). Reports suggest that out of its 3,400 dealerships, only 100 centres had the required trade certification, raising serious compliance concerns.
Regulatory Crackdown on Ola Electric stores
All dealerships must display a trade certificate which permits them to showcase, sell, conduct test rides on or transport unregistered two-wheelers. Based on a Bloomberg report, 95% of the Ola Electric dealerships lacked the certificates. Hence, MVA authorities raided and shut the stores and seized the vehicles in the premises. The officials also sent showcase notices to Ola Electric. This regulatory crackdown adds to the company’s ongoing challenges, further impacting its operations and market position.
Ola Electric spokesperson has issued a statement saying, the investigation is ‘prejudiced’ and ‘misplaced’. The spokesperson further said that Ola maintains an inventory of unregistered vehicles at its distribution centres and warehouses across Indian states that are fully compliant with the guidelines of the Motor Vehicles Act. The company has not responded to the showrooms not having trade certificates.
Ola Electric’s sales crash to a new low in February
In February 2025, the electric two-wheeler market witnessed a significant shift as Bajaj Auto surpassed Ola Electric to become the top seller. Bajaj Auto sold 21,389 units, marking its second time leading sales in the past three months. TVS Motor secured the second spot with 18,762 units sold, while Ather Energy followed with 15,836 units. Ola Electric, despite previously leading the market, experienced a decline, selling 14,932 units and dropping to fourth place. The sharp decline in sales is likely due to renegotiations with vehicle registration agencies, which affected its Vahan registration numbers. As a result, the company saw a massive -64.47% month-on-month drop, compared to 24,336 units sold in January 2025. The year-on-year figures were even more concerning, with a -74.61% decline, highlighting a significant slowdown in Ola’s sales performance.
