The Ministry of Heavy Industries has directed the Automotive Research Association of India (ARAI) to investigate the discrepancy between Ola Electric’s reported sales figures and actual vehicle registrations, as well as multiple consumer complaints against the company, sources aware of the development said.
Ola Electric, a company that once dominated the electric two-wheeler market in the country, is now surrounded by a storm of criticism and scrutiny.
The company is under investigation after a discrepancy surfaced between its reported sales figures and actual vehicle registrations.
Ola Electric claimed to have sold 25,000 electric scooters in February 2025, while the Government database from the Vahan Portal reflected only 8,600 vehicle registrations for the same month, raising concerns.
As a result, the Ministry of Heavy Industries directed the Automotive Research Association of India (ARAI) to investigate the gap between the company’s reported sales figures and the actual number of vehicles officially registered.
Furthermore, the Ministry of Heavy Industries also highlighted ARAI’s responsibility to ensure adherence to the guidelines of these schemes.
MHI’s Order
Given that Ola Electric is a beneficiary of both the FAME II and PM E-DRIVE schemes and has received eligibility certificates from ARAI itself, ARAI is wholly responsible for ensuring compliance with the guidelines.
An official mentioned that ARAI will investigate the mismatch in sales figures and the consumer complaints against the company, with a report expected within 15 days.
“It is the responsibility of ARAI to ensure that the guidelines of the PM E-DRIVE Scheme are followed. The ARAI will probe the sales figures mismatch and also the consumer complaints against Ola Electric. We have told ARAI to submit a report within 15 days,” the official stated.
ARAI has also been given the responsibility to review Ola Electric’s response to all these concerns and determine if the discrepancy breaches any regulatory standards or company laws.
Additionally, it has been tasked with verifying whether the company has valid trade certificates and various service centers across the country.
Under Scrutiny by Several Authorities
In addition, Ola Electric is under scrutiny by several authorities, including the consumer rights regulator CCPA, which has initiated an investigation into complaints regarding service shortcomings and issues with the company’s electric two-wheelers.
The company is also under scrutiny by transport departments in several states, such as Maharashtra, Punjab, Madhya Pradesh, etc.
These investigations are a result of concerns regarding the company’s compliance with trade certificate regulations, causing various vehicle seizures, issuance of notices and even closure of several showrooms.
Ola Electric’s Response
In response, Ola Electric explained that the discrepancy between its vehicle sales figures and official registrations in the month of February was caused due to a “temporary backlog in registrations”, which it attributed to ongoing “negotiations with its vendors.”
The company is in the process of responding to the inquiries from all the Authorities, such as the Ministry of Heavy Industries, the Ministry of Road Transport and Highways (MORTH), and the other states seeking additional information.
In addition, the company is simultaneously working to clear the backlog that caused the discrepancy in registration data and has confirmed that sales are strong as well.
As the situation unfolds, it will be interesting to see how Ola Electric handles the pressure, addresses the consumer concerns, and regains customer trust as well.
