By-Business Connect Magazine
Ola Electric, led by founder Bhavish Aggarwal, finds itself under intense scrutiny following allegations of inflating its February sales figures. Reports indicate that the company included bookings for electric scooters and motorcycles—some yet to be launched—in its reported 25,000-unit sales for the month, a move critics argue was designed to bolster its market share and restore investor confidence. However, data from the government’s VAHAN portal reveals only 8,689 registrations, raising red flags about compliance and transparency.
Ola Electric Faces Regulatory Heat Over Alleged Sales Inflation
The controversy deepened when Ola disclosed in a March 21 letter to the Ministry of Road Transport and Highways that its February tally comprised 10,866 third-generation e-scooters and 1,395 Roadster X motorcycles—models not fully delivered or rolled out at the time. This discrepancy prompted the ministry to demand revised figures on March 31, insisting that only invoiced vehicles be counted, with a response deadline of April 7. Ola’s inclusion of “confirmed orders” rather than actual deliveries has sparked debate over whether this breaches local regulations, with potential adverse actions looming if unresolved.
This isn’t Ola’s first brush with regulatory oversight. The company is already grappling with probes over unregistered vehicle sales, trade certificate violations, and consumer complaints numbering over 10,000, as flagged by the Central Consumer Protection Authority in October 2024. Amid a 60% stock plunge from its August 2024 peak and a market share drop to 27% in September, Ola’s aggressive expansion—bolstered by a 4,000-store network and new launches like the Roadster X—appears strained by operational and service challenges.
As the deadline looms, Ola Electric maintains that revenue is recognized only post-registration and delivery, but the fallout from this saga could further dent its credibility. With competitors like Bajaj Auto and TVS Motor gaining ground, the Bhavish Aggarwal-led firm faces a critical juncture to realign strategy and rebuild trust.
