Ola Electric plans to cut store count to 550 amid market share slump

Ola Electric reportedly plans to cut its store count to about 550 by March as sales slow, market share falls sharply and the company restructures operations to reduce costs

Ola Electric is reportedly planning another major scale-down of its physical retail presence as it faces slowing demand and falling market share. The company aims to cut its store network to around 550 outlets by the end of March, according to a report by The Economic Times.

 

The planned reduction comes after the Bhavish Aggarwal-company earlier expanded its offline footprint to nearly 4,000 outlets across India. In its most recent quarterly update, the firm said it had already reduced the number of operational stores to about 700 as part of a broader reset of its business strategy.

 

The report, citing a letter to Ola shareholders, said the December quarter marked a period of major internal changes for the company. It noted that as the growth of electric vehicle adoption slowed and service operations needed improvement, the firm decided to realign its retail network, cost structure and operating model to focus on long-term stability rather than short-term sales volumes, the news report said.

 

 

Several stores across different regions have already been shut and employees at some locations were asked to leave, the report said.   

 

Financial performance under pressure

 

The company’s financial results reflect the challenges it is facing. For the quarter ended December 31, 2025, it reported a net loss of ₹487 crore, compared with ₹564 crore in the same period last year. Revenue from operations dropped sharply by 55 per cent year-on-year to ₹470 crore.

 

Vehicle deliveries also declined significantly. The company sold 32,680 electric two-wheelers during the quarter, a fall of 61 per cent from a year earlier.

 

Registration data from the Vahan portal shows a steep decline in the company’s market share in the electric two-wheeler segment. Its share dropped to about 6.3 per cent in January from roughly 26 per cent a year earlier. In the first 18 days of February, sales fell further to 2,575 units, bringing its share down to around 4.2 per cent.

 

Once the clear market leader, the company now trails established automakers such as TVS Motor Company, Bajaj Auto and Hero MotoCorp, as well as newer rivals like Ather Energy.

 

The company has also faced regulatory scrutiny in the past year, with authorities in some states ordering the closure of certain showrooms and service centres for operating without valid trade certificates. 

 

Workforce cuts and leadership exits

 

As part of a wider restructuring plan announced last month, the company said around 5 per cent of its workforce would be affected. Out of roughly 3,500 employees, about 175 are expected to be impacted.

 

The firm is focusing on improving service quality and increasing automation in customer-facing operations. It said more than 80 per cent of service requests are now being resolved on the same day under its revamped service programme.

 

The past year has also seen several senior executives exit, including the chief financial officer, chief marketing officer and chief technology officer, reflecting ongoing organisational changes.