What's covered under the Article:

Ola Electric, the electric vehicle company led by Bhavish Aggarwal, has seen a series of mounting challenges that have increasingly dented investor confidence and customer satisfaction. Once a dominant player in the Indian electric two-wheeler (e2W) market, Ola Electric is now grappling with several operational, regulatory, and product-related issues. These problems have led to a significant drop in its market share and stock value, currently listed at ₹50 on the BSE.

Rising Customer Complaints and Regulatory Scrutiny

Ola Electric’s troubles began to intensify in 2024 when customer complaints regarding its popular S1 line of electric scooters began to increase significantly. The nature of these complaints ranged from manufacturing defects to issues with battery performance, and even concerns about second-hand vehicles being sold as new. By October 2024, the Central Consumer Protection Authority (CCPA) had issued a show cause notice after receiving nearly 11,000 complaints via the National Consumer Helpline. This warning was a significant blow to the company’s reputation and highlighted ongoing issues with quality control and customer service.

Stock Performance and Investor Confidence

Despite the company's initial success and market dominance, Ola Electric’s stock has seen a sharp decline, which has reflected poorly on investor sentiment. As of April 2025, Ola's market share in the e2W segment dropped to 23%, down from 49% in June 2024, as legacy players like Bajaj's Chetak took the lead in both market value and volume. This decline has been particularly concerning given the company’s once promising position in the rapidly growing electric vehicle sector. Investor confidence has waned further due to the ongoing delays and operational inefficiencies.

Delays in Roadster Motorcycle and Battery Production

Ola Electric’s foray into electric motorcycles with the launch of its Roadster series has been fraught with delays. Initially unveiled in late 2024, the Roadster has yet to meet delivery targets, primarily due to issues with homologation – a process required to certify vehicles for commercial sale in India. These delays have been attributed to technical challenges in areas such as battery management systems and thermal management, as well as issues with the electric motor. With deliveries continuously pushed back, customers have grown increasingly frustrated with the lack of clear timelines for when the Roadster will finally hit the roads.

Moreover, Ola Electric’s ambitious plans for domestic lithium-ion battery production have also faced setbacks. In March 2025, the company received a notice from IFCI regarding missed targets under the Production Linked Incentive (PLI) scheme. While Ola Electric insists that it is on track to meet its production goals by FY26, the financial penalties for missing milestones have cast a shadow over the company’s long-term sustainability.

Regulatory Challenges and SEBI Scrutiny

Ola Electric's woes were further compounded by a warning from the Securities and Exchange Board of India (SEBI) in January 2025. The company violated disclosure norms when Bhavish Aggarwal, via his X (formerly Twitter) account, announced new store openings without filing the necessary disclosures with the stock exchanges. This oversight, according to SEBI, was a serious violation, and the regulator issued a formal warning. These regulatory challenges have not only impacted the company’s relationship with investors but have also increased scrutiny around its governance practices.

Closure of Customer Experience Centres

Ola Electric's troubles reached a new level in April 2025, when the Maharashtra state government ordered the closure of 107 of its customer experience centres. These centres had been selling scooters without the proper trade certificates, leading to the seizure of over 200 vehicles. The company’s reliance on third-party agencies for vehicle registration has come under scrutiny, especially after it was revealed that it had been shifting registration responsibilities in-house to address a backlog. The closures in Maharashtra are just one of many obstacles Ola Electric faces as it attempts to regain its footing in the competitive EV market.

What Lies Ahead for Ola Electric?

Despite these setbacks, Ola Electric remains a significant player in the Indian EV market. However, the company will need to address several key issues if it hopes to regain customer trust and investor confidence. Improvements in manufacturing quality, better communication regarding delivery timelines, and more robust compliance with regulatory norms are essential steps for the company. Bhavish Aggarwal’s leadership will be critical in navigating these challenges and restoring the company’s reputation.

In conclusion, while Ola Electric still holds a considerable market share, its ongoing struggles with product delays, regulatory challenges, and declining stock value paint a troubling picture. The coming months will likely determine whether the company can overcome these hurdles and reclaim its position as a leader in India’s electric mobility revolution.

The Upcoming IPOs in this week and coming weeks are Ather Energy, Iware Supplychain Services, Arunaya Organics,Kenrik Industries.

The Closed IPOs are Tankup Engineers.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.