Ola Electric Mobility Ltd is under investigation by the Securities and Exchange Board of India (SEBI) over concerns regarding possible discrepancies in its February 2025 sales data, a report by CNBC-TV18 revealed. SEBI is scrutinizing whether the company made correct, fair, and transparent disclosures in its official stock exchange filings. The investigation was triggered by a notable gap between the data available on the government’s VAHAN portal and the figures Ola Electric presented in its filings.
According to data on VAHAN, Ola Electric registered just 8,600 electric two-wheelers in February 2025, representing a significant decline in the company’s market share, which fell from 25% in January to 11.4% in February. In stark contrast, Ola Electric’s filings indicated 25,000 units sold in February, suggesting a 28% market share. This discrepancy raised alarms and prompted inquiries from two central government departments—the Ministry of Heavy Industries and the Ministry of Road Transport and Highways (MORTH)—to clarify the differences in reported numbers.
Ola Electric is also facing notices from authorities in four states concerning its use of trade certificates at some of its retail stores. The company has acknowledged receiving the notices and stated that it is in the process of providing explanations to the concerned authorities.
Despite the growing scrutiny, Ola Electric’s stock price remained relatively flat on Tuesday, closing at Rs 49.53 on the Bombay Stock Exchange (BSE), showing a slight decline of 0.08%. However, the company’s stock has experienced a sharp downturn in 2025, having lost approximately 42% of its value so far this year.
In response to the concerns raised by the data mismatch, Ola Electric issued an official press statement asserting that its February sales figures were both strong and genuine. The company attributed the lower registration numbers on VAHAN to a temporary delay in the vehicle registration process, which it claimed was due to ongoing discussions with vendors responsible for the registration of vehicles. The company emphasized that the 25,000 units reported in its filings were based on actual customer orders that had been paid in full. Ola Electric clarified that nearly 90% of the orders were fully paid at the time of booking, and not just token bookings.
Further elaborating on the situation, Ola Electric pointed out that the reported sales figures also included orders for its newly launched electric scooters, namely the Gen 3 and Roadster X, which were made available for full purchase (not just booking) in February 2025. The company explained that vehicle deliveries are processed only after the full payment is made, a practice commonly followed in the automobile industry. Ola Electric stressed that revenue recognition is done only after vehicle registration and delivery, which are completed as part of standard sales procedures.
Ola Electric’s clarifications are part of an ongoing effort to address the concerns surrounding the sales data discrepancy and to reassure investors and the public that the company is operating within the framework of regulatory norms and business best practices. The company’s stance is that the discrepancies observed in registration data are due to administrative delays, rather than any attempt to mislead investors or the public. The company also emphasized its commitment to transparency and regulatory compliance as it continues to navigate through the scrutiny of SEBI and the concerned government departments.
Despite the challenges posed by the ongoing investigation, Ola Electric remains one of the leading players in the electric vehicle (EV) sector in India. The company has made significant strides in the past few years, positioning itself as a key player in the Indian EV market. However, the latest regulatory challenges highlight the complexities of the rapidly evolving EV industry in India, where both companies and regulators are grappling with new technology, evolving policies, and growing customer expectations.
As the investigation continues, Ola Electric is expected to cooperate fully with the authorities to resolve the issues and restore investor confidence. The company's response and actions in the coming weeks will be crucial in determining how it navigates the current regulatory scrutiny and its long-term reputation in the market.
