Ola Electric Mobility Ltd (Ola), the maker of Ola brand electric vehicle (EV) or electric scooters, is again in the news for a large gap in its February sales figures and actual EV registration recorded across the country. Ola received notices from Union ministries of heavy industries (MHI) and road transport and highways (MORTH) seeking answers on the mismatch in sales and registration data. Separately, four states issued notices about trade certificates for a few of Ola stores in these states and raided and seized some EVs from the company showrooms.
In a
regulatory filing, Ola says, "We have noted the false narratives being spread about our February 2025 sales data. Here are the facts: Our sales remain strong, and the temporary backlog in February was due to ongoing negotiations with our vendors responsible for vehicle registrations. This backlog is being rapidly cleared, with daily registrations exceeding 50% of our three-month daily sales average. Almost 40% of the February backlog has already been cleared, and the remaining will be fully resolved by the end of March 2025."
"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. This intensified after we discontinued contracts with two nationwide vendors managing our registration process as part of our strategy to streamline operations and drive profitability. Since then, a coordinated effort has been made to create confusion and trigger unnecessary scrutiny," the company says.
Sharing its sales
data on 28 February 2025, Ola said, "Backed by a strong S1 portfolio and sales-and-service network of 4,000 stores across the country, the company sold more than 25,000 units in February with a market share of over 28%, cementing its market leadership in the EV two-wheeler (2W) segment."
However, February data from the Federation of Automobile Dealers Associations (FADA) shows Ola's registration at 8,647 vehicles. FADA sources the registration data from the Vahan portal of the MORTH.
In India, you must register electric 2W with the regional transport office (RTO) if the motor power exceeds 250 watts or the top speed exceeds 25kmph (kilometre per hour). This means that driving such a 2W EV without registration is illegal.
Saharsh Damani, chief executive officer (CEO) of FADA, says, "Is Ola challenging the vehicle registration data published on the VAHAN portal? Ola's statement suggests it has faced a temporary registration backlog. Is Ola delivering vehicles to customers without registration? This is not permitted under the existing rules and regulations governing vehicle sales in India. Automakers and dealers are not allowed to hand over any vehicle to a customer without registration."
Another issue that surprised FADA as well as automobile experts and reporters (like me) who have been covering the automobile sector for long time is the rounded-off figures released by Ola for February. We rarely have seen any automaker, be it Maruti Suzuki India Ltd or Tata Motors Ltd in four-wheelers (including passenger or commercial vehicles) or Hero MotoCorp Ltd, Honda Motorcycle and Scooter India (P) Ltd or Bajaj Auto Ltd for 2Ws releasing round figures for vehicle sales in any month.
Sales data shared by all auto-makers is never rounded off and is always in odd numbers. For example, in February, Hero MotoCorp reported the registration of 385,988 units, while for Honda Motorcycle and Scooter, it was 328,502 units. Even Ola, in February 2024, reported the registration of 34,063 units.
In a regulatory clarification, Ola accepted that it received emails from MHI and MoRTH seeking an explanation of the large gap in sales and registration data for February 2025. "There are no ongoing negotiations...The Company is in the process of responding to the above. Further, the Company has received notices in four states with regard to trade certificates for few of its stores in these states. The Company is in the process of responding to the same."
Ola ended Friday 8.40% higher at Rs56 on the BSE, while the 30-share Sensex closed the week 557 points up at 76,905.51 points.
