Ola’s 90% outlets to be shuttered in India’s top electric scooter-selling state
In a July 3 letter, the Ministry of Transport, the Ministry of Transport, reported to the State Transportation Office against stores that do not have the necessary trade certificate of regional authorities. Mint examined a copy of the letter.
Trade certificates are a regulatory requirement to keep unregistered vehicles in the showroom and to facilitate sales. The movement of the state points to the company that is struggling with the lack of service infrastructure and then the deterioration of the records. The largest electric scooter seller, now TVS Co. and Bajaj Auto Ltd.
Marashtra recorded 212,000 electric sales in the financial year, which ended on March 31, which made it the country’s largest electric scooter market. Ola Electric’s last financial year has made about 12% of more than 344,000 scooters.
“While checking all showrooms with a local rapid investigation team, 442 of 432 showrooms (supervised) were trading certificates and 388 showrooms without trade certificates were closed,” said the letter of the Maharashtra Transport department.
In a response sent by E -Post MintThe company said that we continue to work closely with the relevant authorities in Maharashtra to address any query or concern after your allegations about our stores in Maharashtra are speculative, wrong and wrong.
The company did not specify the queries or concerns she had dealt with. While the queries sent to the Maharashtra Transportation Department by E -mail remained unanswered, the state’s transportation commissioner and the joint transportation commissioner did not respond to short messages.
Assembly problems
Ola Electric has 4,436 stores in which 3,365 belongs to the company in the country. It follows a model directly to the consumer. While buyers can buy directly from the company’s application, sales points facilitate sales and manage test drives. Consumers may also prefer to deliver vehicles directly to the house without going to a store.
Despite the claim that General Manager and President Bhavish Aggarwal claims that regulatory problems are behind the company, the problems continue to increase.
“Q4, there were a lot of these problems with regulatory things. Now, these are now behind us. [For] Network expansion, some areas of trade certificates had to be. Now we are completely in touch with all agencies and all agencies, to make sure we are either compatible or we have applied for the harmony of everything we need. “He said.
On April 21stMintHe reported that the transport department decided to close 121 stores and decided to publish more demonstration notifications. Maharashtra’s transportation commissioner Vivek Bhimanwar said on April 21, “We closed approximately 75 stores and found a total of 121 stores without a trade certificate. In addition, our department sends show notifications to 270 stores.”
Records disagreement against sales
After the company has announced that it was facing the deduction during the registration process in the Stock, Ola Electric’s regulatory examination increased. This also caused an inconsistency and total sales were reported as 25,000 against 8,500 actual records.
The problem with the sales network comes at a time when the company is trying to get back the missing market share. In June, Ola Electric sold a 20.120 battery -powered scooter and bike, according to Vahan Portal (except TaLangana data). The TVs sold 25.407 and Bajaj Auto sold a two -wheeled electric.
He said that he should sell 25,000 scooters every month to reach operational profitability during the call for earnings for January-March.
Investors continued to sell the company’s shares because the stock price has fallen by 53% against a 1.5% increase so far.
Senior Research Analyst Atgeojit Financial Services Saji John said, “The company’s decreasing market share increases concerns about product quality and execution.
John, “In contrast, TVs, Bajaj and Ather won the market share, respectively 25%, 21.5%and 13.7%, respectively reached stronger stability and growth,” he said. “Even though it is suppressed for a close term for Ola, it can support a recovery in its stocks with efforts to recover a wider market, reduce losses and stabilize the market share.”
Ola Electric will announce its results for the first quarter that ended in June on Monday.
