Ola Electric to cut stores to 550 as sales slump deepens

Ola Electric plans to reduce its retail stores to around 550 by March, following a drop in market share and operational challenges, according to sources.

The Bengaluru-based EV maker previously announced a nationwide expansion to 4,000 stores but has since scaled back to 700 outlets as part of a restructuring.

In its latest quarterly update, Ola Electric reported a net loss of 487 crore rupees (US$53.4 million), with revenue dropping 55% year-on-year to 470 crore rupees (US$51.6 million), and delivered 32,680 two-wheelers, down 61%.

Market share in the electric two-wheeler segment fell to 6.3% in January from 26% a year earlier, further decreasing to 4.2% in February.

The company has shut several showrooms and service centers, some operating without valid trade certificates, and has cut staff across various functions.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Ola’s pullback looks like a company problem

India’s electric two-wheeler market kept growing, rising 11% to a record 1.28 million units in 2025 1.
Ola’s sales fell by more than half, while TVS Motor, Bajaj Auto, and Ather Energy each logged their best annual results, with TVS moving ahead as market leader 1.
“Operational challenges” mainly ties to Ola Electric’s own setbacks, including broad complaints about after-sales service delays and a steep post-IPO stock slide that hurt consumer confidence 1.
Store shutdowns fit a cost-cutting push aimed at lower volumes with better efficiency, alongside a “Hyperservice” program meant to rebuild trust in the brand 2.

Subsidy rollbacks raise the stakes for EV plans

Ola’s downturn captures a shift in India’s EV market, with demand moving away from subsidy-driven growth toward decisions based on product quality and service 1.
Policy changes add speed, since subsidies for electric two- and three-wheelers are set to end in March 2026, while incentives move toward performance rules and charging infrastructure support 3.
This turn puts pressure on capital-heavy, direct-to-consumer retail setups where the EV maker pays for its own stores and service centers.
Older automakers can lean on existing dealer and repair networks, while startups like Ola must finance a full physical footprint to compete 1.