Ola Electric, one of the India’s leading electric scooter companies that is facing a serious challenge in Maharashtra. The state government has ordered the closure of nearly 90% of the Ola Electric’s showrooms due to the missing trade certificates and documents required to legally store and sell the unregistered vehicles.
Out of 450 Ola showrooms in Maharashtra
388 have been already shut down. This decision is expected to disrupt the Ola’s supply chain and sales in one of its most important markets. Maharashtra has been a top-performing state for the electric two-wheeler sales, with over 41,000 Ola scooters were sold there last year. The closures could affect the customers who were planning to buy or service for their Ola scooters in the region.
The issue began when the Maharashtra transport department conducted inspections
They have found that most of the Ola outlets that have lacked all the necessary permits. Only 44 showrooms had a valid trade certificates, while the rest of them were just operating without them. These certificates are essential for storing and displaying the vehicles before they are even registered.
This setback comes at a time
When Ola Electric is already facing pressure from the competitors like TVS and Bajaj, who have overtaken Ola in the monthly sales. Ola’s market share has been dropped from 33.4% to 19.6% within just one year, and its financial losses have rapidly increased. In the first quarter of FY26, Ola have reported a net loss of ₹428 crore, up from ₹347 crore the previous year.
The company has responded to the reports
It’s claim are speculative and misplaced. Ola have stated that it’s working is closing in Maharashtra authorities to resolve all the issue. However this closure have already impacted the customer and have also raised the concern about the company.
Maharashtra’s decision highlights the importance of following legal and regulatory rules
Among the EV industry. As electric vehicles have become more popular, companies must ensure that their showrooms and services have meet the government standards.
For Ola Electric this is a wake-up call
The company must focus on fixing it’s compliance issues, rebuilding the trust with customers and also staying competitive in a fast growing market. With all the rise of electric mobility in India situation like these could slow down the process.
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