ARAI To Probe Ola Electric Over Mismatching Sales Figures

The Heavy Industries Ministry has ordered an investigation into Ola Electric regarding a significant gap between the company's reported sales figures and actual vehicle registrations. The Automotive Research Association of India (ARAI) has been instructed to submit its findings within 15 days, alongside an examination of numerous customer complaints against the Bengaluru-based electric two-wheeler manufacturer.

(Also Read: Ola Electric’s Daily Vehicle Registration Surge By 50 Fold)

Official data shows that whilst Ola Electric claimed to have sold over 25,000 units in February 2025, only 8,652 registrations appeared on the Vahan portal during the same month. As of March 20, the company's registrations had reached 11,781 on the portal. Government officials have asked ARAI to ensure that Ola Electric is complying with PM E-DRIVE Scheme guidelines. 

(Also Read: Ola Electric Plans 500 Job Cuts Amid Mounting Losses: Report)

However, in February, Ola Electric Mobility did announce that it was renegotiating agreements with its registration agency, Rosmerta Digital Service. The marquee was doing so to reduce costs and improve efficiency, due to which it would temporarily impact Vahan registration figures. Additionally, the company recently disclosed that , Rosmerta Digital Services Ltd, has initiated insolvency proceedings against its subsidiary, Ola Electric Technologies Pvt Ltd, over impending payment disputes.

This investigation comes amid other regulatory challenges too for Ola Electric. The Consumer Protection Authority has ordered separate probes into alleged service deficiencies and product issues. The company is currently undergoing a restructuring exercise that involves cutting approximately 1,000 jobs across various departments as part of efforts to reduce financial losses.