Ola Electric has been back in the news, and this time it’s for a big reason. Something big is taking place in Maharashtra, the state that has the most electric two-wheeler registrations in India. The transport department’s decision is likely to impact the company’s sales as well as the entire EV space.
Showrooms Directed to Shut Down Over Lack of Certificates
Ola Electric now has a serious challenge in Maharashtra. Reports state that almost 90% of Ola’s showrooms in the state are being closed down. Why? Most of the outlets lack the compulsory trade certificate. This certificate must be present to hold unregistered vehicles in inventory and to enable their sale through showrooms. In the absence of this certificate, operation is deemed as an offense.
Government Action After Inspection
According to the report by Live Mint, on 3 July, the Transport Department of Maharashtra reported the issue to the office of the transport minister. The Local Rapid Investigation Team conducted an investigation into it. Out of 432 Ola showrooms which were inspected, 44 had the requisite certificate. The other 388 showrooms were directed to be closed for not meeting the standard.
Ola’s Strong Presence in Maharashtra
Maharashtra is traditionally a robust market for electric scooters. The state sold more than 2.12 lakh electric two-wheelers in the previous fiscal year, the most in the nation. Ola Electric sold more than 3.44 lakh units in India alone, with 12% of them coming from Maharashtra. It’s no wonder, therefore, that shutting down showrooms in this state is a serious setback for the company.
Ola Bats Back at the Allegations
Ola Electric has counteracted these developments by labeling the reports as “wrong and misleading.” The company asserts that the numbers of closures are incorrect and that the reports were on assumptions. But this is not the first time the company has been mired in controversy. Previously, some customers had expressed concern regarding after-sales service, adding to the company’s already long list of issues.
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