Ola Electric Mobility Ltd. plans to cut back its physical retail network to around 550 outlets by the end of March, according to sources. The move comes as the company tries to stabilise everyday operations amid slowing sales and tougher competition, adding momentum to its wider restructuring drive.
The Bengaluru-based EV maker had earlier outlined ambitious plans to expand to nearly 4,000 stores nationwide, making this rollback a clear sign of how sharply priorities have shifted. However, in its recent Q3 update, the company said it had already reduced its footprint to about 700 outlets, calling the exercise a “structural reset.”
In a regulatory filing, the company stated that it was focusing on restoring service quality, lowering operating costs, and strengthening vertical integration. The outcome, it said, would be a leaner business model with lower breakeven levels and improved margins.
Sales Decline and Competitive Pressure
Several outlets nationwide have already closed, with employees at multiple locations losing their jobs. The scale of these cuts makes it clear this isn’t a minor reset. It’s a big change from last year’s aggressive expansion, and it shows just how much pressure the company is under as competition in the electric two-wheeler market ramps up.
For the quarter ended December 31, Ola Electric reported consolidated revenue of ₹470 crore. The company delivered 32,680 electric two-wheelers during the period, a 61 per cent drop year-on-year.
Once seen as the category leader in India’s electric scooter market, Ola Electric now trails established players such as TVS Motor Company, Bajaj Auto, and Hero MotoCorp, as well as newer rivals like Ather Energy.
Regulatory Issues in Maharashtra
The company has also faced regulatory challenges. Earlier this year, authorities in Maharashtra ordered several Ola Electric showrooms and service centres to shut down over trade certificate compliance issues.
According to state officials, inspections in cities like Mumbai and Pune revealed that some “experience centres” were operating without valid trade certificates or were sharing certificates across multiple outlets. The Maharashtra government directed regional transport offices to take action in such cases.
Stock Performance
Shares of Ola Electric Mobility Ltd. fell as much as 3.20 per cent on Monday, trading at ₹25.72 on the BSE. The stock has slipped well below its ₹76 listing price, a clear sign that investors are losing patience with the company’s recent performance and restructuring. With stores shutting down and rivals closing in, Ola Electric now faces a simple test: fix service issues quickly, win back customers, and convince the market it’s back on track.
