Ola Electric shares surge 5% as Bhavish Aggarwal-led co clarifies on Feb sales data

Ola Electric Mobility Ltd saw its shares rallying 5 per cent in Friday's trade after the electric vehicle (EV) company addressed concerns about what it called misleading reports regarding its February 2025 sales. The Bhavish Aggarwal-led company clarified that its sales remain strong and that the temporary vehicle backlog in February was caused by ongoing discussions with vendors handling vehicle registrations.

The stock rose 5.18 per cent to hit a high of Rs 54.34. Despite this, the stock is down 32.04 per cent year-to-date and 59.34 per cent over the past six months.

Ola Electric mentioned that it had received inquiries from the Ministry of Road Transport and Highways of India (MORTH), the Ministry of Heavy Industries, and authorities from four states, and that it is actively working on responding to these requests.

In a statement filed with the BSE and NSE, Ola Electric explained that the backlog is being quickly addressed, with daily registrations now exceeding 50 per cent of the average daily sales over the past three months. It further stated that 40 per cent of the February backlog had been resolved and the remaining issues should be cleared by the end of March 2025.

The company asserted that this situation is simply a temporary registration delay, yet certain media outlets and other parties have misrepresented it as a regulatory issue through misinformation and smear campaigns.

Ola explained that the situation escalated after it ended contracts with two nationwide vendors who were managing the registration process, as part of its strategy to streamline operations and improve profitability.

The company emphasized that a coordinated effort has been made to stir confusion and unnecessary scrutiny. Its priority remains resolving the backlog efficiently while maintaining transparency and reliability for its customers.

In another filing, Ola Electric confirmed receiving emails from the Ministry of Heavy Industries on March 11, 2025, and MORTH on March 18, 2025. The company stressed that no regulatory or legal actions are currently underway against it.

The inquiries are related to the disparity between the vehicle registration data on the VAHAN portal and the sales numbers reported by the company for February 2025, as well as media reports about non-compliance with the requirement for trade certificates.

Ola Electric also mentioned receiving notices from four states regarding trade certificates for some of its stores in these regions and stated that it is addressing these issues.

Earlier this month, Nomura observed that Ola Electric sold 8,600 units in February, according to VAHAN data, which showed a significant drop in its market share to 11.4% from 25% in January 2025. However, Ola Electric reported selling 25,000 units in February, with a market share of 28%.

In addition, the company recently launched the Roadster X series, its new line of electric motorcycles. Prices for the Roadster X series start 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, offering a remarkable range of 501 km per charge.