Ola Electric faces a major operational setback as Maharashtra’s transport department has shut down 388 of its showrooms, as per the news reports. The closures stem from the absence of valid trade certificates required to legally store and sell unregistered electric scooters, affecting the company’s presence in India’s top EV 2-wheeler market.
Maharashtra has opted to close almost 90% of Ola Electric Mobility Ltd’s 450 showrooms across the state due to the absence of a permit required for vehicle storage. This move could significantly impact sales in India’s largest electric scooter market, especially at a time when the company is already losing ground to competitors.
Maharashtra’s transport department reported that 388 out of 432 inspected Ola Electric showrooms were functioning without the essential trade certificates. These permits are mandatory for displaying and holding vehicles before registration.
As per a Mint report, nearly 90% of the company’s operations in the state were suspended, disrupting sales and logistics in Maharashtra, which is a region contributing 12% of Ola’s annual scooter sales.
Maharashtra led in EV 2-wheeler adoption last financial year, recording 2,12,000 units sold. Out of Ola’s 3,44,000 nationwide sales, over 41,000 units came from this state. The large-scale closures threaten Ola’s sales volume and brand footprint, especially since Maharashtra is key in the company’s overall sales strategy.
Ola Electric operates a direct-to-consumer model with 4,436 stores across India, including 3,365 company-operated outlets. While purchases are app-driven, showrooms offer test rides and initial customer interaction. The absence of valid trade certificates in most Maharashtra outlets suggests major compliance lapses in showroom operations despite regulatory efforts to stabilise the business after previous registration issues.
Read More: Ola Electric's Sales Fall 45% in June 2025 Amid Roadster X Charging Issues!
Ola's market share dropped from 33.4% to 19.6% year-on-year following Q1FY26 sales of 60,500 EVs. A mismatch between reported sales (25,000) and actual registrations (8,500) previously drew regulatory scrutiny. In June alone, rivals such as TVS and Bajaj outperformed Ola, intensifying competition as the company aims to regain lost ground amid operational and legal setbacks.
On July 14, 2025, Ola Electric share price opened at ₹39.92 on NSE, above the previous close of ₹39.80. During the day, it surged to ₹40.72 and dipped to ₹39.60. The stock is trading at ₹39.99 as of 10:45 AM. The stock was up by 0.48%.
Over the past week, it has declined by 1.89%, over the past month, it has declined by 14.44%, and over the past 3 months, it has declined by 20.45%.
The shutdown of 388 Ola Electric showrooms in Maharashtra over missing trade certificates not only affects sales but also raises concerns about compliance and operational execution. Maharashtra’s significance to Ola’s electric scooter revenues amplifies the risks and challenges the company must address to solidify its market standing.
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Published on: Jul 14, 2025, 2:48 PM IST
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