Ola Electric is grappling with a significant operational roadblock as the Maharashtra government moves to shut down nearly 90% of the company’s showrooms in the state. With around 450 Ola stores in Maharashtra, this decision could severely affect electric scooter availability in one of India’s largest EV markets.
Lack of Permits Sparks Closure
According to reports, the closures stem from the absence of valid permits required to store vehicles. This regulatory lapse indicates widespread non-compliance at Ola showrooms, with many also lacking valid trade certificates. The fallout is expected to impact Ola’s supply chain across Maharashtra, a key region for the brand.
Maharashtra: A Crucial Market for Ola
Maharashtra contributed significantly to Ola’s sales last fiscal year, with over 41,000 out of 344,000 national units sold in the state alone. The state’s leading role in EV two-wheeler adoption makes this disruption particularly damaging. With regulatory action now threatening Ola’s stronghold, its dominance in the state faces serious jeopardy.
Declining Market Share and Legal Hurdles
Ola’s market share has dropped sharply, from 33.4% to 19.6% year-on-year. In Q1 FY26, it sold 60,500 EVs—down from previous peaks—and trails competitors like TVS and Bajaj in recent monthly sales. Previous controversies, including a mismatch between claimed sales and actual registrations, have already drawn scrutiny from authorities and eroded trust.
Financial Losses Mount Amid Sales Slump
The company reported a net loss of ₹428 crore in Q1 FY26, an increase from ₹347 crore in the same quarter last year. Revenue also fell by 50% to ₹828 crore from ₹1,644 crore in Q1 FY25. Despite surpassing Bloomberg estimates, these figures reflect the stress Ola is under amid intensifying competition and operational setbacks.
What’s Next for Ola Electric?
Ola’s path forward depends on quick regulatory compliance and strategic responses to regain lost ground. With rivals scaling up, any prolonged disruption in Maharashtra could significantly weaken Ola’s position in the national EV race. For now, the company must address permit issues, rebuild showroom operations, and restore consumer and investor confidence.
