Key highlights
- Maharashtra transport department shuts down 388 out of 432 Ola Electric stores for lacking trade certificates.
- The move affects 12% of Ola’s national sales, disrupting operations in India’s top EV two-wheeler market.
- Ola Electric denies the reports, calling them “speculative and misplaced”, but faces mounting regulatory pressure.
In a sweeping regulatory move, the Maharashtra transport department has ordered the closure of nearly 90% of Ola Electric’s showrooms across the state. Out of 432 inspected outlets, only 44 had valid trade certificates, a mandatory requirement under the Motor Vehicles Act for storing and selling unregistered vehicles.
The remaining 388 stores have been ordered to shut down, triggering a major disruption in Ola’s supply chain and customer service operations in one of its most critical markets.
Why is Maharashtra important to Ola Electric?
Maharashtra isn’t just another state—it’s India’s largest EV two-wheeler market, with 212,000 units sold in FY24. Ola Electric sold over 41,000 scooters here last fiscal, accounting for 12% of its nationwide sales.
This crackdown comes at a time when Ola is already battling declining market share, mounting losses, and intensified competition from rivals like TVS Motor, Bajaj Auto, and Ather Energy.
The compliance gap
The issue boils down to missing trade certificates, which allow dealers to store and display vehicles before registration. Without them, the stores are considered non-compliant and subject to closure.
This isn’t the first time Ola has faced regulatory heat. In April 2025, the transport department flagged 121 stores, shut down 75, and issued show-cause notices to 270 others.
Ola Electric has responded by calling the reports “speculative, incorrect, and misplaced”, and claims it is working with authorities to resolve concerns. However, no timeline or corrective action plan has been shared publicly.
Impact on sales and market share
Ola’s troubles are piling up. In Q1 FY26, the company sold 60,500 EVs, down from 90,000+ units a year ago. Its market share has dropped from 33.4% to 19.6%, while rivals have surged ahead.
The company also faces scrutiny over sales-registration discrepancies, with only 8,500 vehicles registered out of 25,000 reported sales in a recent audit.
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