A recent report on the showroom’s erected by OLA has further increased the scale of tribulations for the brand. As per a recent report the brand has been trying to swap its sales method from that of Digital to conventional showrooms. The brand had invested in 4,000 physical showrooms. As per a report by Bloomberg it has become apparent that the brand only has data for 3,400 showrooms only. A little over 100 locations require trade certificates under the Motor Vehicle Act.
The report by Bloomberg further elucidated 95% stores on which Bloomberg news saw the data, lacked basic certification necessary for displaying vehicles. Selling them and offering test rides on transport unregistered Two Wheelers.
Customer Complaints
In response to complaints that has been raised by users and concerned authorities, Constabulary across Indian states have conducted raids, closed showrooms, seized vehicles and sent show cause notices to Bhavish Aggarwal led firm.
As per the Country’s Motor Vehicle act its mandatory for a showroom to display its trade certificate if it keeps unregistered vehicles as per Hans Kumar. As per the report by Bloomberg it has become apparent that they have been probing Ola for alleged violations.
Sales Drop and Other Crisis
The plummeting share prices as well as sales along with social media backlash for quality issues have further brought the EV manufacturer in a jeopardy. Ola has lost a major proportion of its sales to rivals like that of Bajaj Chetak, TVS I-qube, Ather Energy and Hero MotoCorp as well. As per the reports by Vahan Portal Ola was able to account for only 8,647 units in February 2025. In contrast to the current sales figure the brand had been able to ascertain 33,906 units in February last year.
Ola has further alleged that the number that has been reported by the Vahan Portal might be misleading. Ola has said that the loss in sales have been due to the optimizations of the registration process which has impacted the data for the month of February 2025. Ola Alleges that the sales number might be bigger than that of the 8,647 total sales figure.
Workers Layoff
As per the reports published online It has become apparent that at the time of the IPO launch the company had a workforce of 4,011 individuals, Majority of these workers were involved in manufacturing, supply chain management and service fulfillment as well. IT was in November that Ola reported first one of its major lay off where it laid off about 400 employees.
The recently announced lay off is seemingly much bigger than that of the previous lay off’s. As per the recent news it has become apparent that OLA might be laying off around 1200 employees, which would be a quarter of its total workforce. Such issues have erupted when the brand has already showcased a few new bike models that would further enhance the overall line up of the brand.
Also Read: Toyota’s Cheapest EV Launched! New Specs And Cutting -Edge Autonomous Driving Features Detailed
