Ola Electric’s challenges seem far from over. After dealing with a series of customer complaints throughout 2024, the electric vehicle (EV) manufacturer is now under scrutiny from regulators.
According to NDTV Profit, regional transport officials conducted inspections at multiple Ola Electric outlets, with six stores in Madhya Pradesh and 26 in Maharashtra coming under the scanner in mid-March. As a result, authorities seized 14 scooters in Jabalpur and another 36 in Maharashtra.
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However, sources familiar with the situation told Inc42 that these weren’t raids but routine inspections initiated after an anonymous complaint. The allegation? That Ola Electric failed to maintain proper documentation.
NDTV Profit further reported that Gurugram-based Pritpal Singh & Associates had accused Ola Electric of operating stores, showrooms, and service centers in Maharashtra using a single trade certificate — a violation under motor vehicle regulations.
This is not the first time the Bhavish Aggarwal-led company has faced such issues. Similar incidents occurred in Goa, Jammu and Kashmir, and Bihar, with state authorities scrutinizing Ola Electric’s compliance.
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Bloomberg recently reported that transportation officials across the country have intensified their investigations, claiming that Ola Electric has been operating stores without the mandatory trade certificates required under the Central Motor Vehicles Act, 1988. The act mandates manufacturers and distributors to obtain these certificates before displaying or selling unregistered vehicles.
The report alleged that roughly 95% of Ola Electric’s 3,400 outlets were either selling scooters or offering test rides without valid certification.
Ola Electric, however, has pushed back against these claims. A company spokesperson dismissed the Bloomberg report as “misleading” and “biased.” The representative asserted that the company stores unregistered vehicles at its distribution centers and warehouses in full compliance with the Motor Vehicles Act, with all necessary approvals in place.
Adding to the controversy is Ola Electric’s aggressive expansion. Despite mounting concerns about delivery delays and poor after-sales service, the company rapidly grew its retail network from 800 to 4,000 stores in late 2024. This expansion, while ambitious, now faces increased regulatory scrutiny.
