Synopsis
Ola Electric has acknowledged inquiries from government ministries regarding discrepancies in its sales data and trade certificates. The company is addressing these issues while assuring that there are no legal proceedings against it. A temporary registration backlog is cited as the cause of discrepancies, and Ola aims to resolve these concerns promptly.Key Takeaways
- Ola Electric received inquiries from MHI and MORTH.
- Clarifications were sought regarding trade certificate compliance.
- The company is addressing discrepancies in sales data.
- Registration backlog is due to vendor negotiations.
- 40% of backlog cleared; resolution expected by March 2025.
New Delhi, March 21 (NationPress) Ola Electric announced on Friday that it has received inquiries from the Ministry of Heavy Industries (MHI) and the Ministry of Road Transport and Highways (MORTH) concerning inconsistencies in its sales figures and issues related to trade requirement certificates.
The ministries have also requested clarification on reports concerning non-compliance with the trade certificate requirements, as stated in a regulatory filing by Ola Electric Mobility.
The electric vehicle manufacturer is currently in the process of addressing these inquiries but confirmed that there are no ongoing regulatory or legal actions against the company.
This scrutiny follows concerns regarding a discrepancy between Ola Electric’s reported sales numbers and actual vehicle registrations.
The company explained that this discrepancy is due to a temporary registration backlog, which arose from ongoing negotiations with vendors in charge of handling registrations.
Additionally, Ola Electric revealed that it has received notices in four states related to trade certificates for some of its outlets and is actively working to resolve these issues.
“We assert that there is no material impact of this article on the company,” the firm stated in its filing.
The company further clarified that the registration backlog in February occurred after it ended contracts with two national vendors managing the registration process. This decision was part of Ola's strategy to streamline operations and enhance profitability.
Despite these hurdles, Ola Electric reported that daily registrations have now risen to over 50 percent of its three-month daily sales average.
The company also mentioned that 40 percent of the February backlog has already been resolved and anticipates clearing the remaining backlog by the end of March 2025.
Ola Electric remains committed to addressing these concerns and continuing its expansion in the electric vehicle sector.
“Our focus is on efficiently resolving the backlog while ensuring we serve our customers with transparency and reliability,” the company remarked.
-- IANS
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