Ola's February sales added e-motorbikes which haven't even hit the road yet

By Alisha Sachdev

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Ola Electric Mobility Ltd. counted its yet-to-be launched electric motorcycles and e-scooter bookings in its February sales number, making its market share look larger as it struggles to win back investor confidence. 

The SoftBank Group Corp-backed firm told India’s Ministry of Road Transport and Highways in a March 21 letter that it added customer bookings for 10,866 third-generation e-scooters as well as 1,395 Roadster X motorcycles in its February sales record, citing them as “confirmed orders.”  

Roadster motorcycles have not been rolled out so far, while third-gen scooter deliveries began in March. These two categories together accounted for nearly 50% of the 25,207 “confirmed orders” in February, Ola’s letter shows. The ministry had asked the company to clarify on its monthly sales number. 

The Bhavish Aggarwal-led firm had reported February sales of “more than 25,000 units” in a Feb. 28 filing. But the vehicle registration tally from a government portal mapped only 8,600 units — roughly a third of the sales figure.  

While the e-scooter maker had said on Feb. 19 that its renegotiations with two vendors may delay registrations, this “large gap” between vehicles sold and registered triggered a query from the ministry. Ola responded on March 21, detailing vehicle bookings without clarifying if these were invoiced or delivered to customers. 

The ministry in a March 31 letter asked Ola to revise the figures and include only those vehicles that were invoiced in its February data. It also sought Ola’s response within seven days “to avoid any adverse action.” Both letters were seen by Bloomberg News. 

Regulatory Uncertainty  

While no wrongdoing has been established against Ola and the company isn’t under a formal probe on this issue — the ministry may assess if any local laws were broken or if the firm misrepresented its sales — the directives point to the regulatory uncertainty around the firm that has seen multiple crises in recent months. 

“Sales in February have been calculated based on the full payment received from customers,” an Ola spokesperson said in an email. The company “recognizes revenue only upon completion of the registration and delivery of the vehicles,” the spokesperson said, adding that Ola was addressing all the queries from the ministry.  

The road transport ministry did not respond to an email seeking comments. 

Ola’s February numbers are an anomaly not just in the Indian auto sector but also a deviation from the firm’s own filings in other months. Sales for the months of January and March tracked vehicle registrations and didn’t mention bookings. 

The e-scooter pioneer in India has been under intensifying regulatory scrutiny. Last year, Ola was warned by India’s market regulator for sharing an announcement on X before the exchanges. The Central Consumer Protection Authority served Ola a notice in October over alleged violation of customer rights, misleading ads and unfair trade practices. 

The company said in an Oct. 8 filing that it’ll respond to the consumer protection body within 15 days but saw no financial impact. It also added 3,200 showrooms and service centers in December to allay buyer woes.  

This year, Ola has faced raids and vehicle seizures from state transport officials for lack of trade certificates at its stores. Its shares have slipped over 60% from the peak it touched soon after a blockbuster listing in August amid multiple crises in recent months. 

The road transport ministry has also queried Ola about this non-compliance related to trade certificates, after a Bloomberg News investigation last month showed the firm was falling short of this mandatory compliance.