Ola Electric Shares Surge 6% After Denying Regulatory Issues, Citing Registration Backlog For February Sales Discrepancy
Shares of Ola Electric Mobility demonstrated a 6% increase to ₹54.71 on March 21, 2025, on the Bombay Stock Exchange (BSE). After the company cleared up questions about its sales discrepancies, the stock price of Ola Electric Mobility rose by 6% until reaching ₹54.71 on the Bombay Stock Exchange (BSE).
Background Of The Discrepancy
Ola Electric succeeded in selling around 25,000 units of its electric scooters in February 2025. Official records from VAHAN showed only 8,600 registered vehicles during that time frame, which raised questions about the notable difference between numbers.
Both the Ministries of Heavy Industries and Road Transport demanded clarification from Ola Electric about their unexplained report variations.
Company’s Clarification
The company explained that a short-term delay in vehicle registration created the difference between reported scooter sales and recorded registrations. Ola Electric revealed that the registration backlog happened because they stopped working with two vendors who handled the registration management.
The company deliberately shifted its operations to activate these strategies with the dual purpose of operational efficiency and financial gains.
Ola Electric put into action various measures to enhance vehicle registration speed as a solution for clearing the backlog. Ola Electric declared it achieved over half of its previous three-month registration levels daily.
The company plans to finish clearing the February backlog together with expectations of complete resolution by the end of March 2025 and has already cleared up to 40% of this backlog.
Market Reaction
The market approved of Ola Electric’s swift handling of the registration backlog matters and their proactive efforts to resolve the backlog issue. The company’s share price delivery of 6% demonstrates that investors trust in the firm’s transparent operations as well as its dedication to resolving technical problems.
The market has recognized the continued sales strength of Ola Electric during operational modifications by giving its stock price an upward boost.
Regulatory Inquiries And Operational Adjustments
Market authorities, including the Ministry of Heavy Industries and the Ministry of Road Transport and Highways, started inquiries about the unexplained difference between sales numbers and registered unit counts. Ola Electric responded to the queries by reinforcing its dedication to fasten backlog resolution.
The company took this decision to end its vendor agreements because it wanted to simplify procedures and boost profitability. The management restructuring difficulties resulted in delayed vehicle registration procedures that caused the detected differences.
The company works with affected suppliers to reach agreements that will promote quick issue resolution while stopping similar backlog problems.
Assurance To Stakeholders
Ola Electric provided its stakeholder base with guarantees about strong customer demand and effective registration backlog management practices. The vendor transition process caused this backlog since the problems had external origins rather than operational errors inside the company.
Ola Electric predicts the complete elimination of the backlog by March 2025, which will complete the population match between sales records and registration records.
The clarification by Ola Electric regarding its sales-registration mismatch, combined with its dedication to resolving the problem, has generated optimistic market sentiment that caused investors to significantly increase the stock value.