Ola Electric Denies Regulatory Concerns, Blames Low Sales On Registration Backlog
The company stressed that its sales remained strong and assured that efforts were being made to clear the backlog, which had caused discrepancies in registration data
Ola Electric has addressed recent media reports regarding its sales figures for February 2025, attributing the issue to a temporary backlog in vehicle registrations and dismissing any concerns related to regulatory matters. In a statement released on Friday, the company stressed that its sales remained strong and assured that efforts were being made to clear the backlog, which had caused discrepancies in registration data.
The electric vehicle maker clarified that the backlog was not a result of internal operational issues and that it was being steadily resolved. It highlighted that daily registrations had already surpassed 50 per cent of its average daily sales over the past three months. According to the latest update, 40 per cent of the February backlog had been cleared, with the company expecting full resolution by the end of March 2025, as noted in an exchange filing.
Temporary Registration Backlog
“This is a straightforward case of a temporary registration backlog, yet certain media outlets and vested interests have deliberately misrepresented it as a regulatory issue through misinformation and smear campaigns,” the company said.
Ola suggested that the reports started circulating after it terminated contracts with two national vendors who were previously responsible for managing vehicle registrations.
“Since then, a coordinated effort has been made to create confusion and trigger unnecessary scrutiny. Our focus remains on resolving the backlog efficiently and continuing to serve our customers with transparency and reliability,” it added.
In a separate exchange filing, Ola Electric revealed that it had received information requests from the Ministry of Heavy Industries on March 11, 2025, and from the Ministry of Road Transport and Highways (MORTH) on March 18, 2025. The company further clarified that no regulatory or legal proceedings were currently pending against it.
Investigation
Meanwhile, media reports suggested that Ola Electric was facing regulatory scrutiny, with the Ministry of Heavy Industries investigating discrepancies between the company's reported sales and actual vehicle registrations.
Ola Electric claimed it sold 25,000 electric scooters in February 2025. However, data from the government’s Vahan portal showed only 8,600 registrations for the same period. As part of an ongoing inquiry, the Maharashtra Regional Transport Office (RTO) conducted inspections at several Ola Electric showrooms across the state, including in Pune. Officials checked whether the vehicles had valid documentation and were being sold under trade certificates. After these inspections, 36 scooters were seized in Mumbai and Pune for compliance violations.
Regulatory actions have extended beyond Maharashtra. Reports indicate that multiple Ola Electric outlets in Punjab have been shut down, and in Jabalpur, RTO authorities issued notices to the company after discovering unregistered scooters being sold without valid trade certification.
This isn't the first time Ola Electric has faced regulatory scrutiny. Earlier this year, the Securities and Exchange Board of India (SEBI) issued a warning regarding lapses in the company’s disclosures.
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