Ola Electric shares slide over 3% after Maharashtra orders closure of unlicensed showrooms
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Shares of Ola Electric Mobility slipped as much as 3.5% on Wednesday to Rs 42.60 on BSE after a report stated that the Maharashtra Transport Department had directed regional authorities to shut down the company's showrooms and service centres operating without valid trade certificates.The regulatory action follows a letter dated April 16 from the state's Joint Transport Commissioner, which noted that 121 Ola Electric showrooms were found operating without the mandatory trade certificates, and 109 show-cause notices had been issued. According to The Economic Times, which cited the letter, 75 showrooms have already been shut down.The state transport department has now instructed district-level transport offices to take immediate action. '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 from the transport office, action should be taken to close that center or showroom, and its original trade certificate should be cancelled,' the letter stated.The crackdown is part of a broader enforcement drive by the Maharashtra government, which has already conducted multiple raids on Ola Electric outlets. According to the same letter, a total of 192 vehicles were seized during these operations.The regulatory headwinds come at a time when Ola Electric is already under pressure from central ministries. Last month, the company received inquiry emails from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways over alleged violations related to trade certificates and discrepancies in vehicle registrations.This scrutiny has coincided with a sharp deterioration in the company's operational performance. According to Vahan data cited by The Economic Times, Ola Electric has sold 69,142 electric scooters so far in 2025 — a steep drop from 1,54,297 units during the same period last year. The decline has significantly eroded the company's market share in the electric two-wheeler segment.Ola Electric's market share has declined sharply from 33.4% to 19.6% year-on-year, after selling 60,500 units in the first quarter of FY26. The company has ceded ground to rivals TVS Motor, Bajaj Auto, and IPO-bound Ather Energy, all of whom outpaced Ola in June sales.This follows an earlier compliance concern this year, when a gap between reported sales of 25,000 units and only 8,500 actual registrations raised fresh questions about the company's disclosure practices.The company's financial performance has also shown signs of stress. In Q1 FY26, net loss widened to Rs 428 crore, up from Rs 347 crore in the same quarter last year. Revenue halved to Rs 828 crore, compared to Rs 1,644 crore in Q1 FY25.
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