Maharashtra transport department cracks down on Ola Electric showrooms operating without trade certificates
ETtech April 22, 2025 10:41 PM
Synopsis

In a letter dated April 16, the state’s joint transport commissioner noted that 121 Ola Electric showrooms are operating without trade certificates, and that 109 show-cause notices have already been issued. Of these, 75 showrooms have been shut down so far, the letter noted.

The Maharashtra Transport Department has issued a notice directing regional transport offices to take immediate action against electric two-wheeler manufacturer Ola Electric Mobility’s showrooms and service centers operating without valid trade certificates.

In a letter dated April 16, the state’s joint transport commissioner noted that 121 Ola Electric showrooms are operating without trade certificates, and that 109 show-cause notices have already been issued. Of these, 75 showrooms have been shut down so far, the letter noted.

The official directed local transport authorities to immediately shut down any Ola Electric outlet functioning without the mandatory trade certificate under the Motor Vehicles Act.

“If the showroom or store cum service center of the company M/s Ola Electric Mobility Limited in your area of operation is doing business without obtaining a trade certificate from the transport office, action should be taken to close that center or showroom and the original trade certificate of that service center or showroom should be cancelled,” according to the letter.

ET has seen a copy of the letter.

The local authorities have carried out multiple raids across the state targeting the Bengaluru-based company, during which a total of 192 vehicles were seized, as per the letter.

Mint first reported this development.

Further tightening enforcement, the notice instructs transport offices to disable the login IDs of showrooms that have not obtained valid trade certificates. This action was to be completed within one day, with a compliance report submitted to the commissioner’s office without delay.

The enforcement drive could significantly disrupt Ola Electric’s retail and service operations across Maharashtra if the company fails to address the compliance issues promptly.

As of now, Ola Electric has not issued a public response to the notice.

Ola Electric has been under regulatory scrutiny in recent months for alleged non-compliance lately. Last month, it received inquiry emails from both the Ministry of Heavy Industries and the Ministry of Road Transport and Highways over discrepancies in vehicle registrations and violations related to trade certificates.

According to data from the Vahan portal, Ola Electric has sold 69,142 electric two-wheelers so far in 2025, compared to 1,54,297 units in the same period last year. The decline in sales has led to a loss of market share to competitors such as Bajaj Auto, TVS Motor, and IPO-bound Ather Energy.

In the October-December quarter, the company’s net loss widened 50% year-on-year (YoY) to Rs 564 crore, while operating revenue declined 19%.
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