Ola Electric has denied reports of falling sales and regulatory problems, saying that a drop in vehicle registrations in February 2025 was due to an ongoing issue with its registration vendors. In a statement on Friday, the company accused its former vendors of spreading false information after their contracts were terminated.
The company clarified that the delay in vehicle registrations was only temporary and not a sign of weak sales. “Our sales remain strong,” Ola Electric assured, explaining that the issue was simply a backlog caused by vendor negotiations.
Also Read: Ola Electric shares jump over 6% after clarification on February sales data
Ola Electric also reported that its daily vehicle registrations are now over 50% of the average daily sales from the past three months, showing quick recovery. The company has already cleared 40% of the February backlog and expects to resolve the remaining delays by the end of March 2025.
The company claimed that the controversy began after it ended contracts with two major vendors who handled vehicle registrations. This decision was made to improve efficiency and profitability. Since then, these vendors have allegedly tried to create confusion and bring unnecessary attention to the matter, the company said.
Ola Electric is a company that manufactures electric vehicles (EVs) and battery cells. In the quarter ending December 2024, it reported a net loss of ₹564 crore, higher than the ₹376 crore loss in the same period the previous year. Its net sales also dropped by 19.37% to ₹1,045 crore in Q3 FY25 compared to Q3 FY24.
Also Read: Ola Electric Claims ‘Coordinated Attack’ Behind February 2025 Sales Dip
Despite this, Ola Electric’s stock price rose by 8.4% to ₹56 on Friday, 21 March 2025. The stock had hit a record low of ₹46.32 on 18 March 2025, a significant fall from its listing price of ₹75.99 on 9 August 2024. The stock had reached its highest price of ₹157.53 on 20 August 2024.
