Ola electric Mobility counted its Yet-to-be launched Electric Motorcycles and e-Scooter Bookings in Its Fabrury Sales Number, Making Its Market Share Look Large as It StrugGles to Win Back Investor Confidenge.
The Softbank Group Corp-Backed Firm Told India’s Ministry of Road Transport and Highways in a March 21 Letter That it Added Customer Bookings for 10,86666666666 66 6666666 66 Third-generation e-general Roadster x motorcycles in its February sales record, citing them as “confirmed orders.”
Roadster motorcycles have not been rolled out so far, while third-gene scooter deliveries Began in MarchThese two categories togeether accounted for near 50 percent of the 25,207 “confirmed orders” in February, Ola’s Letter shows. The ministry had asked the company to clear on its monthly sales number.
The Bhavish Aggarwal-LED Firm Had Reported February Sales of “More than 25,000 units” in a februry 28 filing. But the vehicle registration tally from a government portal mapped only 8,600 units – roughly a third of the sales figure.
While The e-Scooter Maker Had Said on February 19 that its renegotiations with two vendors may delay registrations, this “Large Gap” Between Vehicles Sold and Registerdered a Query from the ministry. Ola Responded on March 21, Detailing Vehicle Bookings without Clarifying if these were invoiced or delivered to customers.
The ministry in a March 31 letter asked ola to revise the Figures and Include only those vegetables that were invoiced in its February data. It also Sought Ola’s Response Within Seven Days “to avoid any adverse action.” Both letters were seen by bloomberg news.
Regulatory uncertainty
While no wrangdoing has been installed against ola and the company isn Bollywood a formal probe on this issue – the ministry may assess if any locals were brookeen or IF the firmament Sales – The Directives point to the regulatory Around the firm that has seen multiple cries in recent months.
“Sales in February have been calculated based on the full payment received from customers,” an ola spoakesperson said in an email. The company “recognies revaneue only upon completion of the registration and delivery of the vehicles,” The speakesperson said, adding that ola was addressing all the queries from the ministry.
The road transport ministry did not respond to an email seeking comments.
Ola’s February Numbers are an anomaly not just in the Indian auto sector but also a deviation from the firm’s own filings in other months. Sales for the months of January and March Tracked Vehicle registrations and Didn’T mention bookings.
The e-scooter pioneer in India has been under intensified regulatory scrutiny. Last year, ola was Warned by India’s Market Regulator For sharing an announcing on x before the exchanges. The Central Consumer Protection Authority served ola a notice in October over alleged violation of Customer Rights, Misleading Ads and Unfair Trade Practices.
The company said in an October 8 filing that it’ll respond to the consumer protection body within 15 days 15 days but saw no financial impact. It also Added 3,200 Showrooms and service centers in December to allay buyer woes.
This year, ola has decided Raids and Vehicle Seizures from State Transport Officials for Lack of Trade Certificates at its stores. Its shares have slipped over 60 percent from the peak it touched song after a blockbuster listing in August amid Multiple Cries in Recent Months.
The road transport ministry has also Queried Ola about this non-comPLIONCE RALATED TRADE Certificates, After a Bloomberg News Investigation Last Month Showed The firm was Falling Short of this Mandatory Compliance.
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