Ola Electric's 90 Per cent Outlets To Be Shut Down In Maharashtra: Report

The state government of Maharashtra has decided to shut down 90 per cent of the showrooms of electric two-wheeler manufacturer Ola Electric, as per Livemint's report. This translates to a closure of 450 stores in the state. The report suggests that the reason behind the closure is the lack of permits for storing vehicles. When implemented, the move tends to disrupt the supply of two-wheeler electric vehicles in one of the largest markets.

Maharashtra is one of the biggest consumer states in the country in terms of electric two-wheeler EVs. For the same reason, it is a crucial market for Ola Electric. More than 41,000 of Ola's 344,000 sales across the country came from this state, highlighting its importance to their sales figures and brand visibility. However, the company is encountering difficulties in Maharashtra, as the majority of its showrooms in the area do not possess valid trade certificates, which points to significant issues with operational compliance.

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Ola's market share has experienced a decrease on a year-over-year basis, declining from 33.4 per cent to 19.6 per cent after the sale of 60,500 EVs in the first quarter of FY26. This decline follows prior regulatory scrutiny due to a gap between reported sales (25,000) and actual registrations (8,500). The company is now contending with heightened competition, as rivals such as TVS and Bajaj have outperformed Ola in June sales, complicating its recovery from operational and legal issues.

This comes while the brand has initiated the deliveries of its first electric motorcycle in the country, called the Ola Roadster X. The electric motorcycle was launched in India in February 2025.