Ola Electric faces a government probe over discrepancies in reported sales vs. actual vehicle registrations, along with rising consumer complaints. Read the latest updates
The Heavy Industries Ministry has instructed the Automotive Research Association of India (ARAI) to investigate discrepancies between Ola Electric's reported sales figures and actual vehicle registrations, along with numerous consumer complaints against the start‑up, Economic Times reported.
Heavy Industries Minister HD Kumaraswamy is expected to send the letter by next week.
Discrepancies between Ola Electric’s reported sales and actual vehicle registrations have raised concerns about the Bhavish Aggarwal‑led start‑up. Although the start‑up claimed to have sold 25,000 cars in February, data from the Vahan Portal indicates that only 8,600 of those vehicles were registered, a figure that has alarmed the authorities.
Previously, the start‑up received a letter from the Ministry of Heavy Industries (MHI) requesting an explanation for the alleged discrepancy. As part of the ongoing investigation, Maharashtra RTO officials inspected several Ola showrooms across the state, including one in Pune. During these inspections, officials verified that vehicles were sold with valid trade certificates and proper paperwork. Due to noncompliance, 36 scooters were seized in Pune and Mumbai.
Ola Electric has been under regulatory scrutiny from various agencies, including the consumer rights watchdog CCPA, which has ordered investigations into complaints regarding alleged "deficiencies" in the start‑up's electric two‑wheelers and services.
The start‑up stated on Friday that it is working to clear the backlog responsible for the discrepancies in vehicle registration data and that sales remain high. The start‑up is in the process of responding to emails from the Ministry of Heavy Industries, the Ministry of Road Transport and Highways (MORTH) and four states, all seeking further information.
"It is simply a case of a temporary registration backlog," the start‑up explained in a submission to the stock exchanges BSE and NSE, adding, "Yet certain media outlets and vested interests have deliberately misrepresented it as a regulatory issue through misinformation and smear campaigns."
Ola stated that, as part of its strategy to boost profitability and streamline operations, it terminated contracts with two national suppliers responsible for managing the registration process—a decision that has further fueled the narrative.
"A coordinated effort has been made to create confusion and trigger unnecessary scrutiny. Our focus remains on resolving the backlog efficiently and continuing to serve our customers with transparency and reliability," it said.