False Narrative? Ola Electric Faces Questions Over Sales, Vendor Issues and Insolvency Petition
Ola Electric has pushed back against claims about its February 2025 sales figures, attributing a backlog in vehicle registrations to vendor negotiations. Meanwhile, the company is dealing with an insolvency petition filed by an operational creditor and has announced cost-cutting measures aimed at financial stability.
False Narrative? Ola Electric Faces Questions Over Sales, Vendor Issues and Insolvency Petition
After several reports questioning Ola Electric for its February 2025 sales performance, Ola has stated that the temporary backlog in vehicle registrations was due to ongoing negotiations with vendors responsible for handling the process. The company claims that daily registrations have now surpassed 50% of its three-month daily sales average and that 40% of the backlog has been cleared. The company expects the remaining backlog to be resolved by the end of March 2025.
For February 2025 sales Ola Electric declared that they sold more than 25,000 units in February with a market share of over 28%. But according to Vahan Portal, Ola Electric sold 8,647 units of electric two-wheelers in February 2025 reflecting a Y-o-Y decline of 74.6% compared to 34,063 units sold in February 2024. In terms of M-o-M sales Ola Electric saw a 64.4% decline with 24,336 units sold in January 2025.
Ola Electric also accused certain media outlets of misrepresenting the issue as a regulatory problem. The company alleges that this intensified after it discontinued contracts with two vendors managing the registration process as part of an operational restructuring.
Insolvency Petition Filed Against Ola Electric Subsidiary
Separately, a petition has been filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Ola Electric Technologies Private Limited, a wholly owned subsidiary of Ola Electric Mobility Limited. The petition, submitted by M/s. Rosmerta Digital Services Limited before the National Company Law Tribunal (NCLT) in Bengaluru, claims non-payment for services rendered and seeks the initiation of Corporate Insolvency Resolution Process (CIRP).
Ola Electric has stated that it disputes the claims and is taking legal steps to challenge the allegations.
Cost-Cutting Program Implemented
In an effort to reduce operational expenses, Ola Electric has completed the implementation of a cost-cutting and restructuring initiative launched in November 2024. According to the company, this program includes shutting regional warehouses, automating processes and improving efficiency in its sales and service network. The company claims that these changes have reduced vehicle inventory levels and improved customer delivery times.
With these measures in place, Ola Electric expects to achieve breakeven in its automotive segment for Q1 FY26, with the financial impact becoming visible from April 2025.
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