Over 388 Ola Showrooms In Maharashtra To Shut Down

The Maharashtra Transport Department has decided to shut down 388 outlets or 90% of Ola Electric Mobility’s showroom network in the state, reported the Mint. The transport authorities have cited that the stores do not have any valid permit to store vehicles, which in turn makes their operation illegal. Thus, marking another major setback for the company, which was already grappling with several non-compliance issues, followed by disruption in registrations, and service-related challenges. 

This is not the first time that Ola Electric’s showrooms have come under scrutiny. Earlier this year, Ola Electric showrooms across the nation were raided due to the same reason, i.e. lack of trade certificates. Back then, the raids were conducted based on complaints filed by Ola customers due to a lack of accountability or service by the brand. Moreover, Ola Electric recently commenced deliveries of its debut bike, the Ola Roadster X, in May, and to have a chunk of its retail outlets go out of business will strike a major blow to the company’s sales performance at the start of Q2 FY 26. 

Ola Electric’s sales performance improved marginally in Q1 FY 26. Its automotive segment crossed its first major milestone by registering EBITDA positive for the month of June. So far, Ola Electric has retailed 68,192 vehicles, and manufactured 11,744 battery cells, which will be used in its Ola S1 Gen3 scooters and the Roadster X, by this year itself. But while the Bengaluru-based public company’s gross margin increased by 25.6% already, its Auto Margin EBITDA dropped by 11.6%, while the consolidated EBITDA margin is down by 28.6%. 

The situation will get more critical for Ola Electric if it loses traction in one of the largest electric scooter markets in the country. In FY 25 alone, a total of 2,12,000 electric scooters were sold in the state, out of which Ola’s sales in the state were 12% of its total sales of 3,44,000 scooters it retailed in the country. Will Ola Electric be able to gain lost ground? The EV maker would bet on the recent OS update across its model portfolio, and its first motorcycle to strengthen market traction for the brand.