Raids, Seizures And Slumping Shares: Can Ola Electric Recharge Its Future?

Once the face of electric vehicle EV innovation in India, Ola Electric found itself in hot water this week as its shares fell 4 per cent in a single trading session. The market has been rocked by the decline, which was brought on by rumours of regulatory raids and seizures at its stores. Investors are rushing to find out if Ola Electric's high-voltage ambition is short-circuiting, as the stock has already dropped 36 per cent in 2025 and 52 per cent in the last six months.

According to sources, authorities recently raided many Ola Electric outlets across India, suspecting trade certification irregularities. The Motor Vehicles Act requires vehicle showrooms to exhibit legitimate trade certificates in order to operate legally. However, investigations discovered that just about 100 of Ola Electric's 3,400 showrooms nationally displayed the required trade certifications. This serious lapse prompted transportation officials to undertake raids, culminating in the closure of multiple showrooms and the seizure of vehicles. A show cause notice has also been sent to the corporation, requiring an explanation for the violations.

Market reaction and share price decline

While Ola has denied any wrongdoing, describing the raids as "routine checks," the optics are ugly. According to Rushlane, almost 200 vehicles were seized, raising worries about compliance issues in a company vying for dominance in India's EV sector.

Following these developments, Ola Electric's share price fell by 4 per cent. This decline adds to the company's already significant issues, which include a 36 per cent drop in stock value by 2025. And investors are growing concerned about the company's regulatory compliance and how it will affect future operations and profitability.

Beyond regulatory concerns, Ola Electric has faced operational challenges that have harmed its market position. The company, which was once a market leader in electric scooters, has suffered a fall in sales due to customer concerns about service quality and vehicle performance.

If we talk about numbers, Ola has witnessed a staggering 74.5 per cent YoY decline in sales, plummeting from 33,906 units in February 2024 to just 8,647 units in February 2025. 

Ola Electric’s current crisis is a stark reminder that even market darlings aren’t immune to turbulence. While the raids and stock crash paint a grim picture, the EV giant isn’t out of the race yet. For investors, this could be a make-or-break moment: will Ola shift gears to reclaim its throne, or will it stall in the slow lane?