Ola Electric faces government enquiries over registration discrepancies, trade certificates

Electric two-wheeler maker Ola Electric on Friday said it has received inquiry emails from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways over discrepancies in vehicle registrations and media reports on non-compliance with trade certificate requirements.

According to the Vahan portal, only 8,652 Ola Electric vehicles were registered in February, while the company reported sales of 25,000 in regulatory filings, leading to discrepancies between its reported sales figures and government registration data.

Ola Electric also disclosed that it has received notices in four states regarding trade certificates for some of its stores.

The registration discrepancy arose due to what the company called a “temporary backlog” caused by ongoing negotiations with vendors handling vehicle registrations, according to a stock exchange filing on Friday.

Ola Electric added that the backlog is being cleared, with daily registrations already exceeding 50% of its average daily sales over the past three months. As of the latest update, 40% of February’s backlog had been resolved, with full resolution expected by the end of March 2025.

Further, the company is in the process of responding to the government’s inquiries but clarified that no regulatory or legal proceedings are currently underway.

Earlier, the Bhavish Aggarwal-led firm said its renegotiations with vehicle registration service providers, including Rosmerta Digital Services and Shimnit India, had impacted February registrations. On March 15, Rosmerta Digital Services filed a plea to initiate insolvency proceedings against Ola Electric Technologies over alleged payment defaults.Over the past year, Ola Electric has been losing market share to rivals such as Bajaj Auto, TVS Motor, and IPO-bound Ather Energy.

Earlier this month, the company said it expects its automotive business to turn Ebitda positive in the April-June quarter, driven by cost-cutting measures projected to save around Rs 90 crore per month.

However, the company’s net loss widened 50% year-on-year (YoY) to Rs 564 crore in the October-December quarter, while operating revenue declined 19%.

Since its market debut in August 2024, Ola Electric’s stock has declined nearly 65% from its peak. On Friday, its shares closed at Rs 56, up 8.4% from the previous day’s close.