Ola Electric's 90% shops in Maharashtra to shut. Here's why

Ola Electric Mobility Ltd.'s 90 per cent of showrooms in Maharashtra, the state that registers the highest number of electric scooters, are facing closure. The electric two-wheeler manufacturer that once grabbed the top spot in the Indian electric two-wheeler market but later slipped to third position behind TVS and Bajaj Auto, has 450 showrooms in Maharashtra, among which 90 per cent showrooms are facing closures, which could potentially disrupt the sales of Ola Electric as well as in the country's largest electric scooter market.

Live Mint has reported that the Maharashtra government has decided to shutter nearly 90 per cent of Ola Electric's 450 showrooms in the state, as these stores have no trade certificates, which is a regulatory requirement to keep unregistered vehicles in the outlet and facilitate sales. This comes as another major blow to the EV manufacturer as it has already been grappling with a lack of service infrastructure and then disruption in registrations.

The report claims that on July 3, the Maharashtra transport department informed the office of the state’s transport minister that regional authorities have taken action against those stores which did not have the required trade certificate. “In checking all showrooms with a local speedy investigation team, it was found that 44 out of 432 showrooms which were inspected have trade certificates, and 388 showrooms without trade certificates have been shut down," the Maharashtra transport department’s letter read. The report also quoted the EV company as saying that the claims regarding the stores in Maharashtra are speculative, incorrect and misplaced. "Having said that, we continue to work closely with the concerned authorities in Maharashtra to address any specific queries or concerns," Ola Electric reportedly responded to Mint.

Maharashtra is known for registering the highest number of electric two-wheelers in India. The state recorded sales of 212,000 electric two-wheelers in the last financial year, which was the highest for any state in the country in FY25. Ola Electric registered more than 344,000 units of sales in the last fiscal, and Maharashtra alone contributed 12 per cent to that. In such a situation closure of 90 per cent of its stores in the state would give the EV manufacturer a major setback.

This is not the first time Ola Electric has found its name in the middle of controversy. Previously, several consumer complaints surfaced against the EV maker's after-sales service. The company also faced criticism about the quality of its Ola S1 range of scooters.

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