The Joint Transport Commissioner of Maharashtra has asked local transport authorities to close all 121 stores without a trade certificate. Mint A copy of the letter sent to local authorities has been reviewed. In fact, the state’s transport specialist has confirmed Mint There are 270 OLA electric stores that will issue display factor notifications.
According to the letter, 75 of the 121 stores have been closed and local authorities have been asked to close the rest.
“If your area of operation M/s ola Electric Mobility Limited’s showroom or store and service center is in business without obtaining a trade certificate from the transport office, action should be taken to close the center or showroom,” the Joint Transport Commissioner wrote in an April 16 letter.
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To be sure, Maharashtra recorded sales of 212,000 electric two-wheelers in the fiscal year ended March 31, making it the largest electric two-wheeler market in the country.
According to the government’s Vahan Portal, Ola Electric sold a total of 344,000 electric two-wheelers in the fiscal year 2025 (FY25). Of these, 40,303 units were sold in Maharashtra, accounting for about 12% of its total scooters.
When contacted, an OLA spokesperson said: “Your claims about our stores in Maharashtra are speculative, incorrect and misplaced.”
However, the state Department of Transportation confirmed Mint. “We have closed about 75 stores, with a total of 121 stores without a trade certificate. In addition, our department has sent notifications for the reason for the display to another 270 stores.”
An OLA spokesman added: “We continue to work closely with relevant authorities in Maharashtra to resolve any specific questions or concerns.”
According to a letter from the Joint Transport Commissioner cited earlier, local authorities carried out several raids across the state, during which they caught 192 cars.
In enquiry by the Alliance Road Transport and Expressways and the Ministry of Heavy Industry, the regulatory action is targeted. Ola Electric said in the exchange documents that the government had asked about non-compliance with the trade certificate.
The legend of Maharashtra
On March 31, the Joint Transport Commissioner in Maharashtra sent a letter to Ola Electric asking the company to respond to a complaint that it operates certain stores without the necessary documents.
The letter said state authorities carried out a special drive to inspect OLA stores in the Regional Transport Office (RTO) in Mumbai, Leung and Pune.
“In the actions taken by these RTO offices, unauthorized showrooms and shops and service centers were found to be operating and vehicles without properly registered were sold,” the letter said.
The company was asked to provide an explanation within three days.
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Ola Electric replied on April 5 that the company follows a unique direct direct to consumer business model that does not rely on dealers.
“Until a few months ago, we opened a model in which our vehicles were stored in the country’s distributed area in the National Distribution Center (SDC). These SDCs comply with all permits, including trade certificates from transport officials in jurisdictions,” the company wrote in its reply.
The company said it decided to leave the SDC and leave the vehicle in the store.
However, the state’s latest developments show that authorities remain unhappy with the level of compliance with trade norms.
In a letter dated April 5, Ola Electric said the company has rapidly expanded its store network and is ensuring that “these stores have all relevant licenses and approvals to operate, including trade certificates from jurisdictional RTOS.”
In an investor speech released on April 1, the company said it has 3,365 company-owned stores and 1,071 network partners, totaling 4,436.
The latest regulatory action comes as Ola Electric faces fierce competition from Bajaj Auto Ltd and TVS Motor Co. Ltd. Auto Dealers Association Data Federation. Ola, with 344,009 units and 29.9% market share, fell 29.9% from its 34.79% market share in FY24.
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“We also stressed that given our gross margin expansion and operating cost control, we can expect automatic segment Ebitda Breakeven with approximately 50,000 sales per month,” Ola Electric founder Bhavish Aggarwal said on the company’s earnings call.
EBITDA shortens revenue before interest, taxes, depreciation and amortization.
According to Vahan data, the company sold about 23,500 cars in March.
Ola Electric’s shares have fallen more than 38% since the beginning of the year, while the Nifty Auto index has fallen by 5%.
Shashank Krishna Rao of Mumbai contributed to the story.
