Shares of Ola Electric Mobility slipped as much as 3.5% on Wednesday to Rs 42.60 on BSE after a report mentioned that the Maharashtra Transport Department had directed regional authorities to shut down the business display rooms and service centres operating without valid trade certificates.The regulative action follows a letter dated April 16 from the states Joint Transport Commissioner, which noted that 121 Ola Electric display rooms were found running without the mandatory trade certificates, and 109 show-cause notifications had actually been provided.
According to TheIndianSubcontinent, which mentioned the letter, 75 display rooms have already been shut down.The state transportation department has actually now advised district-level transportation offices to take instant action.
If the display room or store-cum-service center of M/s Ola Electric Mobility Limited in your area of operation is performing business without obtaining a trade certificate from the transportation office, action must be required to close that center or showroom, and its original trade certificate must be cancelled, the letter stated.The crackdown belongs to a broader enforcement drive by the Maharashtra federal government, which has already conducted multiple raids on Ola Electric outlets.
According to the same letter, a total of 192 cars were taken throughout these operations.Regulatory scrutiny and sales slumpLive EventsThe regulatory headwinds come at a time when Ola Electric is already under pressure from central ministries.
Last month, the business got inquiry emails from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways over declared violations related to trade certificates and disparities in lorry registrations.This analysis has actually coincided with a sharp wear and tear in the companys functional performance.
According to Vahan data cited by TheIndianSubcontinent, Ola Electric has actually sold 69,142 electric scooters so far in 2025 a steep drop from 1,54,297 units during the exact same duration last year.
The decline has significantly deteriorated the companys market share in the electrical two-wheeler segment.Eroding market positionOla Electrics market share has actually declined greatly from 33.4% to 19.6% year-on-year, after offering 60,500 systems in the very first quarter of FY26.
The business has actually ceded ground to competitors TVS Motor, Bajaj Auto, and IPO-bound Ather Energy, all of whom exceeded Ola in June sales.This follows an earlier compliance issue this year, when a space in between reported sales of 25,000 systems and only 8,500 real registrations raised fresh questions about the business disclosure practices.The business monetary efficiency has actually also revealed signs of tension.
In Q1 FY26, net loss broadened to Rs 428 crore, up from Rs 347 crore in the same quarter last year.
Earnings cut in half to Rs 828 crore, compared to Rs 1,644 crore in Q1 FY25.|Maharashtra transport department cracks down on Ola Electric display rooms operating without trade certificates(Disclaimer: Recommendations, recommendations, views and viewpoints provided by the professionals are their own.
These do not represent the views of TheIndianSubcontinent)