Ola Electric deliveries delayed over price renegotiation with vehicle registration agencies: Report

Ola Electric is negotiating for roughly a third of what the vehicle registration agencies charge in a cost-cutting bid.

Published on: Mar 14, 2025, 11:39:02 IST

By HT News Desk

Prefer HTon Google

Share via

Copy link

Ola Electric's decision last month to renegotiate contracts with two of India’s largest vehicle registration agencies resulted in delayed deliveries.

A man walks past the logo of Ola Electric during a press conference ahead of it's IPO launch in Mumbai, India, July 29, 2024. (Francis Mascarenhas/Reuters)

The waiting period ended up increasing to 20-45 days from 5-7 days before February, according to a Mint report which cited managers at seven Ola Electric stores across New Delhi, Mumbai and Bengaluru as saying.

HT.com cannot independently verify the authenticity of the information contained in the report.

Also Read: Gold pauses after hitting record high amid Donald Trump tariffs stoking trade war fears

The renegotiations came about with the company looking to drastically cut the associated costs with the agencies Rosmerta Digital Services Pvt Ltd and Shimnit India Pvt Ltd, especially for entering registration data into Vahan, the transport department’s website.

The agencies had charged Ola ₹1,400-1,600 for registering each electric vehicle, according to the report which added that Ola renegotiated for a price around one-third of this.

Ola Electric also needs these agencies' services due to its direct-to-consumer model wherein there are only experience centers which direct customers to its online platform.

The delivery delays resulted in several buyers taking to social media to complain.

Also Read: Baba Ramdev's Patanjali Ayurved enters insurance sector

Despite all of this, the company has claimed that delivery times improved, being reduced from 12 days to 3-4 days, according to an exchange filing on Wednesday.

Its rivals such as Bajaj, TVS, Ather, and Hero however, don't have this issue since they operate using traditional dealerships.

Bajaj and TVS had also previously dethroned Ola Electric from its spot as the electric two-wheeler market leader as the competition in the space heated up.

Bajaj recorded a 25% market share in December, followed by TVS at 23.5% and Ola Electric at 19%, according to the report. However, Ola Electric regained leadership in January with a 26% market share.

Also Read: Urban Company offers ‘Insta Maids’ for domestic help service

The company's shares had also taken a hit, falling by over 17% on the Bombay Stock Exchange (BSE) as compared with a 5% decline in the BSE Auto index. Overall, it is trading 33% below the price it was listed at in August 2024.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.