Ola Electric: A Bangalore-based electric two-wheeler company Ola Electric, has been facing a series of challenges in recent months. From a 60% drop in stock value to mass layoffs, the brand has encountered multiple setbacks. Now, a new controversy has emerged that could bring even more trouble for the company. Let’s dive into the details and find out whether Ola is really shutting down.
Trade Certificate Violation – Is Ola Shutting Down?
The Indian Motor Vehicle Act (MVA) mandates that all automobile brands must comply with specific rules and regulations, one of which is obtaining a trade certificate. This certificate is essential for selling, displaying, offering test rides, and transporting unregistered vehicles. It is also mandatory to display this certificate in all showrooms.
However, Ola Electric has allegedly violated this rule by failing to display trade certificates in 95% of its stores. Out of 3,400 showrooms, only around 100 stores have the certificate properly displayed. As a result, Ola showrooms were raided, scooters were seized, and several outlets were shut down. A show-cause notice was issued to the company for non-compliance.
Authorities had been issuing warnings since 2023, but Ola reportedly failed to take corrective measures. Nearly two dozen notices were sent by state transport authorities, yet the company did not address the violations. Officials claim this is a serious regulatory issue and must be resolved to adhere to the law. The investigation is ongoing, and further action may be taken against Ola.
Ola’s Response to the Investigation
In response to the issue, an Ola spokesperson stated that the company maintains an inventory of unregistered vehicles in multiple warehouses across India. He further claimed that Ola has obtained all necessary approvals and follows the Indian Motor Vehicle Act.
However, Ola dismissed the findings of the investigation as “misplaced and prejudiced”. Interestingly, when responding to the authorities’ email, Ola did not clarify or provide any explanation regarding the absence of trade certificates in its showrooms.
Ola’s Growing Challenges
Ola Electric was once a dominant player in the electric two-wheeler market. However, in recent times, the company has been dealing with numerous customer complaints, particularly regarding its after-sales service, product quality, and range issues.
The company has also struggled on the stock market, witnessing a 60% decline in its share value. Additionally, Ola recently laid off over 1,000 employees and contract workers. The brand has also delayed the launch of its electric motorcycles, further adding to its woes.
With the latest trade certification issue, Ola Electric’s challenges continue to pile up. It remains to be seen how the company addresses these ongoing problems before attempting to move forward.
