Ola Electric Gets Big Shock, Maharashtra Government to Close 90 Percent of Its Showrooms, Bajaj Auto, TVS Motor

There are difficulties for Ola Electric included in large electric two-wheeler companies. About 90 percent of the company’s showrooms in Maharashtra will be discontinued. The reason for this is that the company does not have permits for these showrooms. There are about 450 stores of Ola Electric in Maharashtra and about 90 percent of these can be closed.

A media Report It has been told that due to lack of trade certificate near most of the company’s showrooms in Maharashtra, the state government has decided to close them. Under the Central Motor Vehicle Act and Rule 33 of the Central Motor Vehicles, the manufactures and distributors of the vehicles have to take a business certificate for registration of vehicles. A large number of showrooms in Maharashtra may have a drastical decline in sales of Ola Electric. Electric two-wheelers have a major stake in sales. Ola Electric’s market share declined to 19.6 percent in the first quarter of the current financial year. It was about 33.4 percent in the same period of the previous financial year.

Competition increased for the company

Last month, Ola Electric sales were 20,190 units. This is a decrease of more than 45 percent on a year-on-year basis. According to data from the Federation of Automobile Dealers Association (FADA), the company’s monthly sales have increased by 9.13 percent. In May, the company sold 18,501 units. Recently, Ola Electric started delivery to customers after a few months delay of their first electric motorcycle X.

In the market of electric two-wheelers, Ola Electric is getting a tough competition from Bajaj Auto and TVS Motor. Sales of electric scooters with Affordable Price of Bajaj Auto and TVS Motor have increased. Ola Electric has been facing challenges such as sales declines, regulatory pressure and tight competition from other electric two-wheeler companies since bringing an Initial Public Offer (IPO) in August last year. Recently, the company had said that it is considering taking a loan of about Rs 1,700 crore to repay the current date. The company’s share price has also declined drastically.