New Delhi, March 10 (IANS) Shares of EV company Ola Electric on Monday fell by nearly 4 per cent, following reports of raids, vehicle seizures, and showroom closures linked to the company.
Reports suggested that the electric two-wheeler manufacturer is facing regulatory issues and has received warning letters from the government for allegedly violating rules under India’s Motor Vehicles Act.
Due to customer complaints, transport authorities in multiple states have reportedly conducted raids, shut down showrooms, and seized vehicles.
The company has also received show-cause notices regarding these alleged violations, the report added.
However, an Ola spokesperson dismissed these claims, calling the reports “prejudiced” and “misplaced.”
The company stated that its distribution centres and warehouses across India follow the guidelines of the Motor Vehicles Act and that it maintains unregistered vehicles at these locations in compliance with the law.
Following these reports, Bhavish Aggarwal-led company’s stock faced fresh selling pressure, dropping over 4 per cent to touch an intra- day’s low of Rs 54.11 per share on the Bombay Stock Exchange (BSE).
However, it recovered slightly and was trading at Rs 54.46, down by 3.66 per cent or Rs 2.07.
The stock was close to its 52-week low of Rs 53.71, which it reached last week on March 3 amid speculation that the company is planning to lay off over 1,000 employees to reduce losses.
Since the beginning of 2025, Ola Electric’s stock has declined by 36 per cent and currently trades over 60 per cent below its peak since its listing in August.
As per available data, only about 100 out of 3,400 showrooms had the trade certificates required under India’s Motor Vehicles Act.
This indicates that over 95 per cent of the reviewed showrooms lacked the necessary certification to display, sell, or offer test rides for unregistered vehicles.
At least six transport officials are reportedly investigating Ola Electric for potential violations.
–IANS
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