Maha Shuts 90% of Ola Electric’s Outlets over Permit Issue: Report
In a recent development that has sent shockwaves through the electric vehicle (EV) industry, Maharashtra has ordered the shutdown of nearly 90% of Ola Electric’s 450 showrooms in the state. According to a report by Mint, the move is a result of Ola Electric’s failure to obtain a trade certificate for storing unregistered vehicles. This sudden development has significant implications for the company, which has been rapidly expanding its operations in the state.
Maharashtra is the largest electric scooter market in the country, accounting for about 12% of Ola Electric’s over 344,000 scooter sales in FY25. The state’s decision to shut down the majority of Ola Electric’s showrooms is a major setback for the company, which has been aggressively pushing its electric scooter offerings in the region.
Ola Electric has been facing regulatory issues in Maharashtra for some time now. In February 2023, the state’s transport department issued a notice to the company, citing non-compliance with the Motor Vehicles Act and the Central Motor Vehicles Rules. The notice ordered Ola Electric to shut down its showrooms and stop selling electric scooters in the state.
The latest development is a direct result of Ola Electric’s failure to obtain a trade certificate, which is mandatory for storing unregistered vehicles. The certificate is issued by the state’s transport department, and it is required for companies that store vehicles that are not registered with the government.
Ola Electric has dismissed the report as “speculative, incorrect and misplaced,” claiming that the company is fully compliant with all regulatory requirements in Maharashtra. However, the report by Mint suggests that the company’s showrooms are being shut down due to the lack of a trade certificate.
The sudden shutdown of Ola Electric’s showrooms in Maharashtra is a major blow to the company’s operations in the state. The company has been aggressively expanding its operations in the region, and it has been relying heavily on the Maharashtra market to drive its growth.
In FY25, Ola Electric sold over 344,000 electric scooters, with Maharashtra accounting for about 12% of those sales. The state’s decision to shut down the majority of Ola Electric’s showrooms will significantly impact the company’s sales and revenue in the region.
The shutdown of Ola Electric’s showrooms in Maharashtra is also likely to impact the company’s plans to expand its operations in the state. The company had announced plans to invest in the region and to create jobs, but those plans are now in jeopardy.
The Maharashtra government’s decision to shut down Ola Electric’s showrooms is a significant development in the EV industry. The move highlights the importance of regulatory compliance in the sector and underscores the need for companies to adhere to government rules and regulations.
In conclusion, the shutdown of nearly 90% of Ola Electric’s showrooms in Maharashtra is a significant setback for the company, which has been aggressively expanding its operations in the state. The move is a result of Ola Electric’s failure to obtain a trade certificate for storing unregistered vehicles and highlights the importance of regulatory compliance in the EV industry.
News Source: https://www.newsbytesapp.com/news/auto/maharashtra-to-shut-90-of-ola-electric-s-inspected-stores/story
