Synopsis
In February, only one-third of Ola Electric scooters sold were officially registered, according to VAHAN portal data. Despite selling 25,000 units, only 8,390 were registered due to ongoing contract negotiations affecting registration processes. The company faces challenges with stock performance and rising losses but remains optimistic about future models.Key Takeaways
- Only 1 in 3 scooters sold in February were registered.
- Discrepancy due to contract renegotiations.
- Company shares hit a 52-week low.
- Reported a 50% increase in net losses.
- New model Roadster X launching soon.
New Delhi, Feb 28 (NationPress) Only one out of three Ola Electric scooters sold in February was officially registered, based on the latest data from the government's VAHAN portal.
While the company reported selling 25,000 scooters that month, just 8,390 were recorded on the VAHAN site.
This discrepancy arises from ongoing contract renegotiations with Rosmerta Digital Services Private Limited and Shimnit India Private Limited, the companies in charge of vehicle registrations, as mentioned in an exchange filing dated February 19.
According to the company, "Due to these negotiations, the registration figures for February 2025, as shown on the VAHAN portal, will experience temporary effects, although sales figures remain unchanged," as per their regulatory filing.
However, the registration process is expected to normalize shortly.
On Friday, the company’s stock was trading at a 52-week low of Rs 55.68, down by Rs 1.13 or 1.99 percent.
The share price has dropped significantly from its 52-week high of Rs 157.40, leading to a decrease in market capitalization from Rs 66,000 crore to Rs 24,630 crore following its initial public offering.
The downturn is attributed to concerns over rising losses, revenue decline, ongoing service issues, and a general correction in the Indian stock market.
In the first half of February, the electric two-wheeler (e2W) manufacturer reported a 50 percent increase in its consolidated net loss, which expanded to Rs 564 crore in Q3 FY25, up from Rs 376 crore in Q3 FY24.
Despite these challenges, the company, founded by billionaire Bhavish Aggarwal, maintains its claim of market leadership in India's electric two-wheeler sector.
The spokesperson stated, "Thanks to our extensive scooter lineup across both mass and premium categories, along with our network of 4,000 stores throughout India, we are experiencing a substantial demand surge beyond urban areas, particularly from Tier 3 and 4 towns."
The company is also gearing up for the launch of its new model, Roadster X, with deliveries set to commence next month.
Ola Electric is optimistic that this upcoming release will further boost the adoption of electric two-wheelers in India.
