Ola Electric, a prominent player in India’s electric two-wheeler market, is facing significant backlash after 75 of its showrooms in Maharashtra were shut down for regulatory violations.
The primary issue is the sale of scooters without valid trade certificates, which are mandatory for legally showcasing and delivering vehicles.
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What’s the Controversy?
Reports indicate that several Ola Experience Centres in Maharashtra were operating without the necessary trade certificates required under the Motor Vehicles Act.
This document is crucial as it grants dealerships the authority to stock, sell, and provide test rides of unregistered vehicles. Without it, such operations become illegal. Moreover, some stores reportedly shared trade certificates, breaching compliance norms.
The Sales Discrepancy That Triggered It All
The situation escalated when a significant gap was discovered between Ola’s reported sales and official vehicle registrations. In February 2025, Ola claimed sales of around 25,000 units, whereas the VAHAN portal revealed only 8,647 scooters had been registered.
This discrepancy raised red flags for the Maharashtra Transport Department, resulting in surprise inspections in cities like Pune and Mumbai. Consequently, several showrooms were raided, scooters were confiscated, and Ola Electric received a notice.
What Authorities Are Saying
Transport Minister Pratap Sarnaik confirmed the violations, stressing the need for compliance from a large company like Ola.
He emphasized that operating without a trade certificate is a serious offense. Due to the inspections, the 75 showrooms must remain closed until valid trade certificates are obtained.
Ola Electric Responds
In response to the allegations, Ola Electric contended that the violations have been “misunderstood and exaggerated.” The company stated it is in the process of acquiring trade certificates for all its outlets in Maharashtra.
Regarding the sales-registration mismatch, Ola attributed it to a temporary backlog in the registration process, claiming that approximately 40% of this backlog has already been resolved.
Bigger Picture: Is Ola Expanding Too Fast?
Experts suggest that Ola Electric’s rapid expansion, including the opening of over 3,200 new experience centres in late 2024, could be contributing to these compliance issues.
While this aggressive growth strategy aims to enhance their retail presence ahead of an IPO, it may have compromised regulatory adherence. This situation, along with ongoing concerns about customer service and product reliability, adds complexity to Ola’s challenges.
What Happens Next?
This incident has sparked broader discussions around transparency, consumer rights, and regulatory enforcement within India’s expanding EV sector.
As one of the leading names in electric mobility, Ola’s ability to navigate this scandal will significantly depend on how swiftly and transparently it addresses these issues.
In the meantime, consumers are advised to verify the legal status of their nearest Ola Experience Centre before making any purchases.
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