Maharashtra has decided to shut down 90 per cent of Ola Electric Mobility showrooms of its total 450 stores in the state, Livemint reported. The reason behind the closure is understood to be the lack of permits for storing vehicles, according to the report. This move tends to disrupt the supply of 2-wheelers EVs in one of the largest markets in the country.
Maharashtra is a crucial state to Ola Electric, as it has led India in EV 2-wheeler sales last fiscal year with 212,000 units. Over 41,000 of Ola’s 344,000 nationwide sales originated from this state, making it central to their sales volume and brand presence. However, the company has been facing challenges in Maharashtra, as most of its showrooms there lack valid trade certificates, indicating major operational compliance issues.
Ola’s market share has faced a decline on a year-on-year basis, falling from 33.4% to 19.6% after selling 60,500 EVs in Q1 FY26. This drop is followed by previous regulatory scrutiny due to a discrepancy between reported sales (25,000) and actual registrations (8,500). The company now faces intensified competition, with rivals like TVS and Bajaj surpassing Ola in June sales, making its recovery from operational and legal challenges more difficult.
Ola Electric’s net loss in Q1 FY26 expanded to Rs 428 crore, up from Rs 347 crore year-on-year, as revenue halved to Rs 828 crore. This decline from Rs 1,644 crore in Q1 FY25 is attributed to weakening sales and heightened competition from established two-wheeler manufacturers, although the results did surpass Bloomberg’s revenue and loss estimates of Rs 735 crore and Rs 452 crore, respectively.