'False narratives': Ola Electric shares in focus after clarification on Feb 2025 sales data

Shares of Ola Electric Mobility Ltd are in focus today after the pure-play EV company said false narratives were being spread about its February 2025 sales data, saying its sales remain strong and that the temporary backlog in February was due to ongoing negotiations with vendors responsible for vehicle registrations.

Ols Electric said it has received emails requesting for information from the Ministry of Heavy Industries, Ministry of Road Transport and Highways of India (MORTH), and four states and that it was in the process of responding to the same.

In a filing to stock exchanges BSE and NSE, Ola Electric said the backlog is being rapidly cleared, with daily registrations exceeding 50 per cent of our three-month daily sales average. "40 per cent of the February backlog has already been cleared, and the remaining will be fully resolved by the end of March 2025," Ola Electric said.

Ola Electric shares are down 34.57 per cent in 2025 so far and 59.34 per cent in the past six months.

The EV player said this is a straightforward case of a temporary registration backlog, "yet certain media outlets and vested interests have deliberately misrepresented it as a regulatory issue through misinformation and smear
campaigns."

Ola said the narrative intensified after it discontinued contracts with two nationwide vendors managing registration process as part of its strategy to streamline operations and drive profitability.

"Since then, a coordinated effort has been made to create confusion and trigger unnecessary scrutiny. Our focus remains on resolving the backlog efficiently and continuing to serve our customers with transparency and reliability," it said.

In another exchange filing, Ola Electric said it has received emails requesting for information from the Ministry of Heavy Industries dated March 11, 2025; and Ministry of Road Transport and Highways of India (MORTH) on March 18, 2025. It insisted there are no ongoing regulatory or legal proceedings against the company.

The queries pertain to why there is a large gap in vehicle registration as per VAHAN portal and sales as per the company’s regulatory filing dated Feb 28, 2025 for the month of February 2025 and also on media articles circulating regarding non-compliance to the requirement of Trade Certificates.

Ola Electric said it has also received notices in four states with regard to trade certificates for few of its stores in these states. The company said it is in the process of responding to the same.

Nomura earlier this month noted that Ola Electric sold 8,600 units in February per Vahan data, with market share dropping significantly at 11.4 per cent against 25 per cent in January 2025. But OLA reported that it has sold 25,000 units in February with market share of 28 per cent.

The company recently entered the EV motorcycle segment with its Roadster X series. The all-new Roadster X series starts at Rs 74,999 for the Roadster X, Rs 1,04,999 for the Roadster X+ 4.5kWh, and Rs 1,54,999 for the Roadster X+ 9.1kWh (with 4680 Bharat Cell) that offers an unrivalled range of 501 km/charge.