Mumbai, July 17: Shares of Ola Electric Mobility Ltd dropped more than 3% on Wednesday after a report said the Maharashtra Transport Department had ordered the closure of the company’s showrooms and service centres operating without valid trade certificates.
The stock slipped as much as 3.5% to Rs 42.60 on the Bombay Stock Exchange after The Economic Times reported that 121 Ola Electric outlets were found operating without the mandatory permits. The state’s Joint Transport Commissioner, in a letter dated April 16, said that 109 show-cause notices had already been issued, and 75 outlets had been shut down.
District transport offices have now been instructed to take immediate action against any Ola showroom functioning without trade certification. “If the showroom or store-cum-service center of M/s Ola Electric Mobility Limited in your area of operation is conducting business without obtaining a trade certificate… action should be taken to close that center or showroom,” the letter said.
The enforcement move is part of a broader regulatory crackdown in Maharashtra. Authorities have seized 192 vehicles from Ola outlets in a series of raids across the state.
The regulatory scrutiny comes amid increasing pressure on Ola Electric from central government ministries. Last month, the Ministry of Heavy Industries and the Ministry of Road Transport and Highways reportedly sent inquiries to the company over alleged violations related to trade certificates and irregularities in vehicle registrations.
Ola Electric’s operational and financial metrics have also shown signs of strain. According to government-backed Vahan portal data cited by The Economic Times, the company sold 69,142 electric scooters in 2025 so far, a sharp decline from 154,297 units in the same period last year.
The company’s market share in the electric two-wheeler segment dropped to 19.6% in Q1 FY26, down from 33.4% a year earlier, as competitors including TVS Motor Co, Bajaj Auto, and Ather Energy recorded stronger sales figures.
Earlier this year, Ola came under fire after a reported sales figure of 25,000 units was found to correspond with only 8,500 vehicle registrations, raising questions about the company’s disclosure practices.
Financial performance has also weakened. Net loss widened to Rs 428 crore in the first quarter of FY26, up from Rs 347 crore a year earlier. Revenue fell sharply to Rs 828 crore from Rs 1,644 crore in Q1 FY25. Ola Electric has not yet issued a public response to the latest enforcement action.
