Ola Electric Mobility which is expanding its physical showroom presence is experiencing regulatory hurdles.
Since 2022, the Bengaluru-based company has opened around 4000 brick-and-mortar locations.
However, a recent investigation by Bloomberg News has reportedly found compliance issues with the company’s expansion strategy.
Trade certifications in Ola Electric showrooms
More than 95 percent of the approximately 3400 showrooms reviewed by Bloomberg News are said to not possess the required trade certificates. The trade certificates are mandatory according to India’s Motor Vehicles Act.
The certifications are necessary for displaying, selling, offering test rides, and transporting unregistered electric scooters.
Since the documents are not available, the authorities acted. Transport officials across states are raiding, closing showrooms, seizing vehicles, and serving formal notices to Ola Electric.
Officials’ statement
At least six transport officials interviewed by Bloomberg News said that they were investigating Ola Electric for suspected violations.
Addressing the claims, an Ola spokesperson dismissed the allegations as “misplaced and prejudiced.” The company clarified that its distribution centers and warehouses across India maintain an inventory of unregistered vehicles in full compliance with the Motor Vehicles Act.
Yet, the reply did not directly clarify if Ola’s public showrooms had the trade certifications or address the said raids and seizures by local transport authorities.
