Hot Pursuit
Company accuses former vendors of smear campaign after contract termination; assures backlog resolution by month-end.
Ola Electric Mobility has refuted claims of declining sales and regulatory issues, attributing a temporary dip in February 2025 registration figures to an ongoing negotiation with vehicle registration vendors. The company, in a media statement released on Friday, accused former vendors of orchestrating a misinformation and smear campaign following the termination of their contracts.
The electric vehicle manufacturer clarified that the reported backlog in registrations was a direct result of these vendor negotiations, and not indicative of a slowdown in sales. Our sales remain strong, asserted the company, emphasizing that the issue was a straightforward case of a temporary registration backlog.
Ola Electric revealed that daily registration figures are now exceeding 50% of their three-month daily sales average, indicating rapid progress in resolving the bottleneck. 40% of the February backlog has already been cleared, and the remaining will be fully resolved by the end of March 2025, the company assured.
The company further alleged that the controversy stemmed from their decision to discontinue contracts with two nationwide vendors managing their registration process, a move aimed at streamlining operations and boosting profitability. Since then, a coordinated effort has been made to create confusion and trigger unnecessary scrutiny, the statement read.
Ola Electric Mobility is an electric vehicle (EV) manufacturer. It specialises in the vertical integration of technology and manufacturing for EVs and their components, including battery cells. On a consolidated basis, the company had reported a net loss of Rs 564 crore in the quarter ended December 2024 as against net loss of Rs 376 crore during the quarter ended December 2023. Net sales fell 19.37% year-on-year to Rs 1,045 crore in Q3 FY25 over Q3 FY24.
Shares of Ola Electric Mobility surged 8.40% to Rs 56 on Friday, 21 March 2025.
The stock fell to a record low of Rs 46.32 on 18 March 2025, marking a significant decline since its listing on 9 August 2024. The stock entered the market at Rs 75.99, slightly below its initial public offering (IPO) price of Rs 76. The stock peaked at Rs 157.53 on 20 August 2024.
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