The move could impact Ola Electric’s presence in one of its strongest markets, raising questions about its retail strategy.
Maharashtra Government Orders Closure of 90% Ola Electric Showrooms
The Maharashtra state government has reportedly ordered the closure of 90% of Ola Electric’s showrooms in the state, according to a report by Livemint. This amounts to nearly 450 stores being shut down, primarily due to the absence of mandatory permits required for storing vehicles.
This move is expected to disrupt the supply of electric two-wheelers in one of Ola Electric’s most important markets.
Maharashtra: A Key Market for Ola Electric
Maharashtra is among the largest consumer states for electric two-wheelers in India and serves as a crucial market for Ola Electric. Out of the 344,000 electric scooters Ola has sold nationwide, more than 41,000 units came from Maharashtra, underlining the state’s significance for the company’s sales and brand visibility.
However, most Ola showrooms in the state reportedly lack valid trade certificates, raising questions about the company’s operational compliance and regulatory preparedness.
Market Share Decline Amid Rising Competition
Ola Electric’s market share has dropped sharply year-on-year, falling from 33.4% to 19.6% after selling 60,500 EVs in the first quarter of FY26. This decline follows earlier regulatory scrutiny over discrepancies between reported sales (25,000 units) and actual vehicle registrations (8,500 units).
Meanwhile, competitors like TVS and Bajaj have outperformed Ola in June sales, further intensifying the pressure on the EV maker.
Ola Roadster X Deliveries Begin Amid Turmoil
Despite these operational and legal challenges, Ola Electric has started deliveries of its first electric motorcycle, the Ola Roadster X, which was launched in India in February 2025. However, the current showroom closures and market share decline may complicate the brand’s plans to strengthen its position in the electric mobility segment.
