Ola Electric Surges 4.5% After 3-Day Slump

Ola Electric Mobility shares bounced back on January 14 after a 3-day losing streak. The stock opened at ₹71.50 and climbed to ₹73.46, marking a 4.61% gain from the previous close of ₹70.18. Despite this recovery, the stock remains 15% lower for January 2025 so far. Heavy selling pressure had pushed the share price below its IPO value of ₹76 earlier this month.

Regulatory Warning from SEBI

The stock faced setbacks after SEBI flagged Ola Electric for violating listing regulations. The company had shared plans for a 4-fold expansion of its store network on social media before informing the stock exchanges. Ola aims to increase its stores from 800 to 4,000 by December 2024, adding over 3,200 new outlets.

Consumer Protection Concerns

The Karnataka High Court granted Ola Electric a 6-week extension to respond to the Central Consumer Protection Authority (CCPA). This comes after the CCPA issued a show-cause notice in October 2024 over alleged violations of consumer rights, misleading ads, and unfair trade practices. Ola stated it had resolved 99.1% of the 10,644 complaints it received.

Record Sales in 2024

Ola Electric achieved record sales of 407,547 electric two-wheelers in 2024, a 52% increase from 267,376 units sold in 2023. The company strengthened its market leadership with a 35% market share in the 2W EV segment. Q1 2024 was the best-performing quarter, with 120,130 units sold.

Expanding Store Network

By Christmas 2024, Ola Electric had expanded its network to 4,000 stores, including 3,200 new outlets co-located with service centres. This move aims to increase EV accessibility in metro areas and smaller towns. Ola’s direct-to-consumer (D2C) model focuses on making EV ownership affordable and addressing rising petrol prices.

Future Outlook

Despite challenges, Ola Electric continues to strengthen its market position with strategic expansions and improved after-sales services. Its efforts to penetrate smaller towns and maintain leadership in the EV market are expected to drive growth in 2025.

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