Ola Electric, one of India’s leading electric two-wheeler manufacturers, has issued a clarification regarding its February 2025 sales numbers. The company stated that its reported figures were not inflated by pre-bookings or token payments, but were based on genuine customer orders backed by full payments.
“Nearly 90% of these orders were paid in full at the time of placement,” Ola Electric said in an official statement, aiming to address investor and regulatory concerns about the legitimacy of its sales claims.
New Models Contribute Heavily to Sales
The company highlighted that its sales figures include confirmed orders for its third-generation e-scooter (Gen 3) and the Roadster X motorcycle—two new models that garnered significant customer interest during their February launch window.
While the Gen 3 e-scooter began deliveries in March, the Roadster X has yet to hit the roads. Nevertheless, Ola asserted that both models were available for full purchase during February, not just pre-booking.
Controversy Triggered by Bloomberg Report
Ola’s statement comes in the wake of a Bloomberg report suggesting that the company had counted bookings for unreleased vehicles in its February sales data. The report raised questions about whether Ola was attempting to artificially inflate market share figures in order to regain investor trust, particularly after a turbulent second half of 2024.
The report also suggested that Ola’s disclosures to government authorities might not align with actual vehicle deliveries, prompting regulatory scrutiny.
Ministry Seeks Explanation Over Data Discrepancy
Ola reportedly informed the Ministry of Road Transport and Highways in a letter dated March 21 that it included 10,866 Gen 3 scooters and 1,395 Roadster X motorcycles in its February sales. Together, these units represented nearly 50% of the total 25,207 orders Ola claimed for the month.
However, this sharply contrasts with government vehicle registration data (VAHAN portal), which showed only 8,600 Ola vehicles registered during the same period—a discrepancy the Ministry flagged as a matter of concern.
In a March 31 communication, the Ministry instructed Ola to revise its reported figures to reflect only vehicles that were invoiced and delivered, threatening “adverse action” if satisfactory clarification was not submitted within a week.
Registration Delays Cited as Cause for Disparity
Ola attributed the registration shortfall to two key issues:
- Ongoing renegotiations with key vendors, which reportedly caused logistical delays.
- A transition to an in-house vehicle registration system, aimed at streamlining the company’s operations and improving efficiency.
This internal overhaul temporarily disrupted Ola’s ability to reflect registrations in the government’s online VAHAN portal, according to the company.
Ola’s Direct-to-Consumer Model Under Pressure
Ola reiterated its commitment to a direct-to-consumer (D2C) model that bypasses traditional dealership networks. “Our tech-enabled, direct-to-consumer sales model has disrupted conventional automotive distribution,” the company noted, emphasizing its innovative approach.
However, this model has faced operational challenges, especially around vehicle registrations, servicing logistics, and customer post-sale support, which are typically handled by third-party dealerships in legacy automotive setups.
Market Share and Investor Sentiment Take a Hit
The controversy comes amid a visible decline in Ola’s market share, which dropped from 39% in July 2024 to 33% in August. Investors have also grown wary. Ola Electric Mobility Ltd’s stock has seen a sharp dip, falling over 7% on March 17 and another 4.4% on March 26.
The stock declines followed news that Ola had been sued by a number plate manufacturer and a vehicle registration agency, alleging the company had defaulted on payments. These developments have fueled speculation about Ola’s cash flow and financial discipline.
Analysts Weigh In on Ola’s Challenges
Industry analysts believe Ola’s situation reflects a larger tension between innovation and regulatory compliance. While Ola has succeeded in building a strong brand and pioneering D2C electric mobility in India, it must now work harder to demonstrate operational reliability, transparency, and financial integrity.
“Success in electric mobility requires more than just exciting products—it demands consistent delivery, clear communication, and trust,” said one auto sector analyst on condition of anonymity.
What Lies Ahead for Ola Electric?
Looking forward, Ola faces the dual challenge of delivering on its customer commitments while managing increasing regulatory scrutiny. To regain lost investor confidence, the company may need to:
- Improve transparency in sales reporting and data validation.
- Accelerate vehicle deliveries and customer onboarding.
- Resolve pending vendor disputes and ensure timely payments.
- Strengthen its after-sales and registration processes.
Despite the headwinds, Ola remains a key player in India’s EV landscape, with a bold vision and a growing lineup of electric two-wheelers. However, the company’s ability to align its aggressive growth strategy with sound governance practices may ultimately determine its long-term success.
