OLA Electric may lose subsidized benefits if e-cab registration delays overflow to FY26
New Delhi: If at the end of the fiscal year, Ola Electric Mobility Ltd will lose government subsidies for electric vehicles, which are more than 16,000 two-wheelers sold by the end of February. Under the guidelines of the program, car manufacturers can only claim benefits after the vehicle is registered.
The company notified the stock exchange last month that its February vehicle sales would not be accurately reflected in Vahan, a government website that tracks daily new vehicle registrations, as it is renegotiating with registered service providers.
Since then, the company has not updated on whether the renegotiation has reached a conclusion, with one of the registration agencies taking the company to the bankruptcy court.
According to Vahan, Ola Electric registered 8,651 electric two-wheelers in February. The company said more than one-third of the 25,000 units sold in February could halve the benefits of two-wheelers sold every two-wheeled wheels earned under the government’s flagship EV subsidy program if their registration is not completed by the end of March.
Ola Electric said in a February 28 press release that the company “sold 25,000 units in February, with a market share of more than 28%. ₹10,000 discount for subsidies.
If the company fails to register all its February sales within the remaining two weeks of fiscal 25 ₹5,000 per vehicle sold during renegotiation with the registration authority.
Registration is the key
exist ₹PM Electric Drive Revolution of Rs 109,000 crore In the Innovation Vehicle Enhancement (PM E-Drive) scheme, vehicle manufacturers must sell their products at discounted or subsidized prices, while the government reimburses them the difference.
The program was launched in October 2024 and will end in fiscal 26. Automakers will receive the largest subsidy for electric two-wheelers sold and registered in FY25 ₹10,000 per unit. Incentives to be cut in half ₹According to the plan notice, each vehicle will be 5,000 per vehicle in fiscal 26 years.
OLA registered 24,380 electric two-wheelers in January, and so far, 8,230. Although the company can record sales once the customer pays for the EV, it is only eligible for subsidies after the 1989 Central Motor Wearth rules are registered.
On March 16, an email inquiry was sent to Ola Electric and a follow-up reminder to WhatsApp on March 17, which did not cause a response from the company.
Ola Electric is currently renegotiating contracts with two of its registered service providers, which is directly aware of the matter in the company. Mintrequest anonymity. The company said it is accelerating its registration, but did not disclose how Ola Electric intends to achieve its goals.
Renegotiation has resulted in long-term delays in delivery of OLA electric scooters, according to complaints posted by store managers and buyers on social media. Mint The report reported on March 14 that the waiting time extends from 5-7 days before February to 20-45 days.
The company notified the stock exchange on March 12 that it had completed a program aimed at reducing costs and improving customer experience.
“In addition to cost savings, these changes have also caused car inventory to be reduced from about 35 days to 20 days and reduced customer delivery time from 12 days to 3-4 days,” Ola Electric said in the exchange filing.
litigation
Within a month of OLA Electric, the stock exchange was reminded of its renegotiation with vehicle registration service providers Rosmerta Digital Services Pvt Ltd and Shimnit India Pvt Ltd, a two-wheeler maker that is one of the agencies.
Rosmerta Digital Services has filed a bankruptcy request against Ola Electric on the Bangalore bench in the National Company Court on March 15, indicating that the company’s registration losses have not been resolved.
Under the guidance of the PM E-Drive program, automakers can submit weekly claims to reimburse subsidies, but less than 120 days after the vehicle is sold.
