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  5. Ola Electric share price tumbles over 4% amid reports on store raids, showrooms shutdown; check details

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Ola Electric share price tumbles over 4% amid reports on store raids, showrooms shutdown; check details

Upstox
By Upstox News Desk

2 min read | Updated on March 10, 2025, 15:20 IST

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SUMMARY

Bhavish Aggarwal-led Ola Electric has denied the allegations, saying that the ‘investigation’ findings are misplaced and prejudiced

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OLAELEC
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During the intraday trade, shares of Ola Electric were trading at ₹54.06 apiece on the National Stock Exchange, plunging 4.37%.

During the intraday trade, shares of Ola Electric were trading at ₹54.06 apiece on the National Stock Exchange, plunging 4.37%.

Shares of Ola Electric Mobility on Monday, March 10, tumbled over 4% following reports of store raids, vehicle seizure and shutdown of showrooms.
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According to a Bloomberg report, an investigation on Ola Electric found that out of roughly 3,400 showrooms for which data is available, a little over 100 locations had trade certificates required under India’s Motor Vehicles Act.

More than 95% of the electric scooter maker’s store lacked the basic certification needed to display, sell, offer test rides on or transport unregistered two-wheelers.

During the intraday trade, shares of Ola Electric were trading at ₹54.06 apiece on the National Stock Exchange, plunging 4.37%.

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As per internal documents and government warning letters seen by Bloomberg, in response to customer complaints, transport authorities across states have conducted raids, closed showrooms, seized vehicles and sent show-cause notices querying the Bhavish Aggarwal-led firm.
At least six local transport officials interviewed by Bloomberg have revealed that they were probing Ola for alleged violations, reflecting the dark underbelly of Ola’s aggressive expansion.

However, Bhavish Aggarwal-led Ola Electric has denied the allegations, saying that the ‘investigation’ findings are misplaced and prejudiced.

Shares of the Bengaluru-based firm have declined nearly 20% in the last month, since February 10. Year-to-date, the scrip has lost over 37%. For a six-month period, Ola shares have fallen 53%.

The company had touched its 52-week low of ₹53.62 last week on March 4, 2025. Its market capitalisation stands at ₹23,893.47 crore.

Ola Electric last week became the first two-wheeler automotive electric vehicle (EV) manufacturer in India to receive incentives under the Production Linked Incentive (PLI) Scheme for Automotive and Auto Component (PLI-Auto Scheme).

Also read: Ola Electric shares have fallen 65% from all-time highs; here’s why

The company has been granted a total incentive of ₹73.74 crore for the determined sales value of FY 2023-24 under the scheme, according to a stock exchange filing by the company.

Ola Electric has sold 25,000 units in February and reached a market share of over 28%, cementing its leadership in the electric two-wheeler segment.

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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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