Mumbai, July, 2025 — Ola Electric has hit a major regulatory roadblock in one of its key markets. The Maharashtra government has ordered the closure of 405 out of 450 Ola showrooms statewide — nearly 90% of its retail presence — due to non-compliance with trade certificate regulations.
These trade certificates, issued under the Central Motor Vehicle Rules, are mandatory for any dealership or outlet storing and selling vehicles. Without them, operations are deemed illegal. Authorities acted after repeated violations, according to reports.
This is a sharp blow to Ola’s nationwide EV strategy. Maharashtra alone contributed over 41,000 units to Ola’s total 3.44 lakh electric scooter sales in FY25. The sudden clampdown disrupts both new sales and after-sales service — in a state where Ola held significant market share.
The timing couldn’t be worse. Ola’s market share dropped from 33.4% in Q1 FY25 to 19.6% in Q1 FY26, and the company reported a widened quarterly loss of ₹428 crore, up from ₹347 crore a year ago. The closure could impact recovery plans and dent investor confidence, especially as Ola gears up for its long-awaited IPO.
While Ola Electric has yet to issue an official statement, insiders say the company is working to resolve documentation issues and reinstate operations.
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