Ola Electric Flags Yet-to-Be Delivered EVs as February Sales, Raising Questions

Ola Electric Mobility, backed by Japan’s SoftBank Group, has found itself in the spotlight again. The electric vehicle (EV) maker has reportedly included the bookings of yet-to-be-launched electric motorcycles and undelivered third-generation e-scooters in its February 2025 sales figures — a move that has sparked scrutiny from India's Ministry of Road Transport and Highways.

Ola Counts Bookings as Sales

In a letter dated March 21, Ola Electric informed the Ministry that its February sales figures included “confirmed orders” for 10,866 third-generation e-scooters and 1,395 Roadster X motorcycles. These bookings formed nearly half of the 25,207 total "confirmed orders" the company reported for February.

Why It Matters

While Ola stated in a February 28 filing that it had sold “more than 25,000 units,” data from a government vehicle registration portal showed only about 8,600 vehicles were registered — a major discrepancy.

This discrepancy prompted the ministry to seek clarification from Ola. The company’s response noted the full payment had been received for the booked vehicles, but it did not confirm whether those vehicles had been invoiced or delivered.

Government Intervention

On March 31, the Ministry issued a follow-up letter asking Ola to revise its February figures and include only invoiced vehicles. The ministry further requested a response within seven days, warning of potential "adverse action" if the matter wasn't addressed appropriately. These letters were reviewed by Bloomberg News.

Regulatory Questions Cloud Ola's Future

While no formal investigation has been launched and no wrongdoing has been established, the Ministry may still review whether Ola’s reporting practices violated any Indian regulations or misrepresented the company’s actual performance.

According to an Ola spokesperson, “Sales in February have been calculated based on the full payment received from customers.” They added that Ola “recognises revenue only upon completion of the registration and delivery of the vehicles,” and assured that the company was cooperating fully with the ministry.

Not the First Time Ola Has Faced Regulatory Heat

This situation is not an isolated one. In the past, Ola has drawn attention for:

• Sharing major announcements on social media platform X before disclosing them to the stock exchanges (warned by India’s market regulator).

• Receiving a notice from the Central Consumer Protection Authority in October for misleading advertisements and potential consumer rights violations.

• Facing raids and vehicle seizures due to the lack of trade certificates at its stores.

A Pattern of Discrepancies

Interestingly, Ola’s sales numbers for January and March matched vehicle registration data and did not include advance bookings. This makes the February filing an outlier.

Despite expanding its network by adding 3,200 showrooms and service centers in December, Ola has been unable to shake off regulatory scrutiny. A Bloomberg investigation in February found Ola falling short of mandatory trade certificate requirements — an issue that also triggered questions from the transport ministry.

Investor Confidence Under Pressure

The fallout from these multiple regulatory red flags is evident in the market. Ola's share price has plunged over 60% from its peak shortly after its high-profile August listing. As the company struggles to rebuild trust, accurate reporting and compliance with transport and consumer laws will be key to its future.

Conclusion

The recent disclosure by Ola Electric — involving the inclusion of yet-to-be-launched electric motorcycles and unregistered e-scooter bookings in its February sales figures — has raised questions about transparency and compliance within India’s evolving EV industry. While the company insists that these were “confirmed orders” backed by full customer payments, the Ministry of Road Transport and Highways has asked for revised numbers based solely on invoiced deliveries.

This discrepancy between reported sales and vehicle registrations not only casts doubt on Ola's internal reporting practices but also reflects the broader regulatory scrutiny facing the EV startup. With past warnings from market and consumer regulators, and ongoing issues such as non-compliance with trade certification requirements, Ola now finds itself at a critical juncture. Its response to these queries will be key in shaping its reputation with both regulators and investors.

Restoring credibility will require greater transparency, better compliance, and a sharper focus on customer trust.