Ola Electric is facing renewed scrutiny and criticism as it grapples with falling sales, regulatory investigations, and growing consumer dissatisfaction. Once hailed as the torchbearer of India’s EV revolution, the company now finds itself under pressure from competitors, government agencies, and its own customer base.
📉 Market Share Decline: Ola Slips to Fifth Place
According to October 2025 data from the Vahan portal, Ola Electric has dropped to the fifth spot in monthly e-scooter sales, trailing behind rivals like Ather Energy, TVS Motor, Bajaj Auto, and Hero MotoCorp. This marks a sharp reversal for a company that once dominated the segment with its S1 series.
The decline is attributed to inconsistent after-sales service, frequent software glitches, and quality control issues that have eroded consumer trust. Ola’s aggressive pricing and marketing strategies are no longer enough to offset the growing appeal of competitors offering better reliability and support.
🕵️ CCPA Investigation: Alleged Consumer Rights Violations
The Central Consumer Protection Authority (CCPA) has launched a fresh probe into Ola Electric over alleged violations of consumer rights. The investigation centers on misleading advertisements, delivery delays, and discrepancies in product specifications.
This isn’t Ola’s first brush with the CCPA. Previous complaints have included non-transparent refund policies, unfulfilled warranty claims, and lack of customer support channels. The recurrence of such issues has prompted regulators to take a closer look at Ola’s business practices.
🛑 Registration Discrepancies: Government Probe Intensifies
In March 2025, the Ministry of Heavy Industries directed the Automotive Research Association of India (ARAI) to investigate Ola Electric for registration discrepancies. The company’s reported sales figures for February 2025 showed a significant mismatch with actual vehicle registrations on the Vahan portal.
This discrepancy has raised concerns about data integrity, compliance with FAME-II subsidy norms, and potential manipulation of sales metrics. If proven, it could jeopardize Ola’s eligibility for government incentives and further damage its reputation.
📉 SEBI Investigation: Alleged Wrongful Disclosures
Adding to the turmoil, the Securities and Exchange Board of India (SEBI) is reportedly investigating Ola Electric for alleged wrongful disclosures related to its sales performance. The probe focuses on whether the company misled investors and stakeholders by inflating sales numbers or omitting key financial risks.
This comes at a critical time, as Ola Electric prepares for a potential IPO. Regulatory scrutiny from SEBI could delay or derail those plans, affecting investor confidence and valuation.
🧯 Internal Challenges: Layoffs, Missed Deadlines, and Poor Service
Internally, Ola Electric is battling a host of operational issues:
- Workforce layoffs have affected morale and service delivery.
- Missed deadlines under the PLI Scheme have drawn criticism from government bodies.
- Poor after-sales service continues to be a major pain point for customers, with complaints ranging from unresponsive helplines to delayed repairs.
These challenges have compounded Ola’s external troubles, making it harder for the company to regain momentum.
⚔️ Competitive Pressure: Rivals Surge Ahead
While Ola struggles, competitors are thriving:
- Ather Energy has expanded its service network and launched new models with robust software.
- TVS and Bajaj are leveraging their legacy networks to offer reliable EVs with strong after-sales support.
- Hero MotoCorp is aggressively pushing its Vida brand, backed by extensive dealer infrastructure.
These players are not only eating into Ola’s market share but also setting higher benchmarks for quality and customer satisfaction.
🏁 Final Thoughts: Can Ola Bounce Back?
Ola Electric’s current predicament is a cautionary tale for fast-scaling startups. Rapid growth without operational depth can lead to cracks in customer experience, regulatory compliance, and brand reputation.
To recover, Ola must:
- Strengthen its service infrastructure
- Improve transparency in reporting
- Engage proactively with regulators
- Rebuild consumer trust through consistent quality
The road ahead is steep, but not impossible. With the right course correction, Ola can still reclaim its position in India’s EV landscape. But for now, the company remains under fire—and the spotlight is unforgiving.