Ola Electric shares likely to fall today after fresh regulatory probe over vehicle registrations

Shares of Ola Electric are likely to be in focus on Thursday after a media report indicated that it is facing fresh regulatory scrutiny.

The Ministry of Heavy Industries has sought details related to discrepancies between the company’s reported sales and actual vehicle registrations, reported CNBC-TV18 quoting sources.

Ola Electric claimed it had sold 25,000 EV two-wheelers in February, but only 8,600 have been registered as per the Vahan portal, added the report.

The report also added that as part of the investigation, Maharashtra RTO authorities have carried out inspections at multiple Ola showrooms across the state, including Pune. The inspection was carried out to find out if the EV scooters were being sold with a valid trade certificate.

A total of 36 scooters have been seized in Mumbai and Pune due to compliance issues, added the report.

The fresh development could be a blow to Ola Electric shareholders, given the performance of the stock this year. The stock is down 38% this year, over 40% since listing, and 13% in a month.

This is not the first time Ola Electric has come under regulatory scrutiny. And earlier this year, the Securities and Exchange Board of India (Sebi) also issued a warning to the company over disclosure lapses.

Ola Electric has emerged as one of the biggest players in India’s electric two-wheeler market, competing with brands like Ather Energy, Bajaj Auto, and TVS Motor.

However, it has faced challenges related to operational transparency, customer complaints, and service network limitations.

The company reported a loss of Rs 564 crore in the October-December quarter due to weaker demand and heavy discounts. Despite cost-cutting efforts, the stock has struggled since its listing, reflecting concerns over its financial performance and long-term sustainability.

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