Ola Electric Faces Crackdown Over Compliance Issues; Sales Plunge Amid Growing Concerns

The Bengaluru-based electric scooter maker Ola has been in the limelight recently for all the wrong reasons. Once a leader in the category, it is now facing a decline in sales along with receiving various complaints from its customers regarding service and range issues, among other complaints. On top, investigations have now revealed that Ola has been flouting many mandates as per the Motor Vehicles Act.

A minimal 100 stores out of a whopping 3400 showrooms had their certifications displayed on their stores. Over 90% of their stores did not have certifications required to sell their vehicles or provide vehicles for test rides. In result of this, the authorities conducted raids and shut down Ola stores. Vehicles have been seized, and a show-cause notice has been sent to the Bhavish Aggarwal led electric two-wheeler manufacturer.

During a further inquiry, the automaker brushed these complaints aside by stating that the reports of non-compliance are ‘misplaced’ and 'prejudiced.’ The company has neither confirmed nor denied their stores being raided connected to non-conformance to MVA regulations.

Ola’s tussle with non-compliances and the authorities is not as new as it seems. The transport department sent a first warning to the company in 2023. As of the present, over a dozen notices have been sent to Ola by the transport department. This new matter has been brought to the fore in March 2025.

The recent complaints towards Ola have resulted in a decline in demand. Sales have fallen down over 60% from the top since Ola’s listing in August 2024. The company managed to sell 8,500 units in February 2025, connecting to a YoY decline. Ola also lost its top seat of the segment to Bajaj, TVS Motors, and Ather Energy, along with landing on the no. 4 spot on the VAHAN government portal.

Despite the complaints and shutdowns, Bhavish Aggarwal has mentioned that Ola has a possibility of seeing a turn-around soon and sales will return to 50,000 units per month. Ola has also announced its upcoming MoveOS 5 beta release. The latest update provides a range of features like the Smartwatch App, Smart Park, Bharat Mood, Road Trip Mode powered by Ola Maps, Live Location Sharing, and Emergency SOS.

Also Read: OPG Mobility announces price reduction on the Ferrato range of 2-wheelers​