Ola Electric Refutes Sales Decline Allegations, Share Price Jumps 6%

Guwahati: Ola Electric's share price saw a notable increase of 6% following the company's rebuttal of claims regarding a significant drop in its sales for February 2025. The company dismissed the allegations as a “false narrative,” explaining that the delay in vehicle registrations was linked to ongoing negotiations with vendors.

 Ola Electric assured investors that its sales remain strong and that the backlog is being swiftly addressed.

In a filing with the exchange, Ola Electric clarified that daily registrations have already surpassed 50% of its average daily sales from the past three months. The company also reported that 40% of the backlog from February has been cleared and confirmed its commitment to resolving the remaining issues by the end of March 2025.

The statement was issued in response to heightened regulatory scrutiny. Ola Electric revealed it had received information requests from the Ministry of Heavy Industries on March 11, the Ministry of Road Transport and Highways on March 18, and inquiries from four states concerning trade certificates for some of its outlets. The questions primarily revolve around discrepancies between vehicle registrations on the VAHAN portal and sales data reported in its February 28, 2025, regulatory filing.

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Ola Electric stated that these issues arose after the company ended contracts with two national vendors responsible for managing its registration process. This decision was part of a broader strategy to streamline operations and enhance profitability. The company suggested that these actions have led to coordinated attempts to create confusion and increase scrutiny. However, it reaffirmed its commitment to addressing the backlog promptly while maintaining transparency and reliability in its operations.