RTO raided 6 stores of electric two-wheeler manufacturing company Ola and seized 14 electric vehicles. Transport department officials also issued show cause notices to 2 stores in Jabalpur and 4 stores in Indore for not having trade certificates. RTO is taking action on Ola’s stores across the country. So far, 32 stores in Maharashtra and Madhya Pradesh have been raided. Apart from this, action has also been taken on some stores in Rajasthan. More than 50 electric vehicles have been seized in this.
Ola Electric Store Raids Timeline
- 8 March- Raids were conducted on many Ola stores across the country. Many stores were sealed and electric vehicles were confiscated for not having a trade certificate.
- 12 March- RTO raided 2 stores in Jabalpur, Madhya Pradesh. During this, transport officials seized 14 electric vehicles.
- 18 March- Raided 4 stores in Indore. Show cause notice was issued for not having trade certificate.
- 17 to 19 March- 26 stores were raided in Mumbai and Pune, Maharashtra. 36 vehicles were seized and notices were issued.
Certification Issues Plaguing Ola Electric
Gurugram-based Pratap Singh & Associates had filed a complaint against Ola Electric and some other companies for not having a trade certificate. After the complaint, Maharashtra transport officials took action.
Ola Electric has opened 4,000 stores since 2022. According to the report, data is available for only about 3,400 of these showrooms. Out of 3,400, only 100 showrooms had the necessary trade certificates under the Motor Vehicles Act.
More than 95% of the company’s stores do not have the basic certification required to display, sell and offer test rides of unregistered two-wheelers.
Ola Electric Responds to Raids
On Tuesday’s action, a spokesperson of Ola Electric said that no vehicle has been seized. Earlier, Ola had called the investigation incorrect and biased. The spokesperson had said that there is an inventory of unregistered vehicles in Ola’s distribution centers and warehouses in many states.
It fully complies with the guidelines of the Motor Vehicles Act and has the necessary approvals. The company did not give any information about the raids on the stores.
Impact on Ola Electric’s Stock
Due to the news of the raid, Ola Electric shares fell by 4.18% on Thursday. On Thursday, the company’s share fell by ₹ 2.25 to close at ₹ 51.60. Ola’s share has fallen by more than 16% in a month. Whereas the share has fallen by more than 50% in 6 months.
Ola Electric shares fell by about 8% on March 17. The company’s stock fell after a bankruptcy petition was filed against one of its subsidiaries.
After the listing of shares in August 2024, Ola’s stock has fallen by about 65% from its peak of Rs 157.53. The company’s shares have fallen by about 20% in the last one month. Apart from this, by December 2024, the company’s market share has come down from 49% to 23%.
