New Delhi, March 21 (IANS) Ola Electric said on Friday it has received inquiries from the Ministry of Heavy Industries (MHI) and the Ministry of Road Transport and Highways (MORTH) regarding discrepancies in its sales data and issues related to trade requirement certificates.The ministries have also sought clarification on reports "regarding non-compliance to the requirement of trade certificates", Ola Electric Mobility said in a regulatory filing.
The electric vehicle maker said it is in the process of responding to these inquiries. However, it stated there are no ongoing regulatory or legal proceedings against it.
The scrutiny comes after concerns were raised about a mismatch between Ola Electric’s reported sales figures and actual vehicle registrations.
The company attributed this discrepancy to a "temporary registration backlog," which it said was caused by ongoing negotiations with vendors responsible for handling registrations.
Ola Electric also disclosed that it has received notices in four states related to trade certificates for some of its stores. It assured that efforts are underway to address these concerns.
“We submit that there is no material impact of this article on the company,” the company said in its filing.
The company further explained that the registration backlog in February occurred after it terminated contracts with two national vendors managing the registration process. This step was taken as part of Ola’s strategy to streamline operations and improve profitability.
Despite these challenges, Ola Electric said that daily registrations have now increased and are over 50 per cent of its three-month daily sales average.
The company also claimed that 40 per cent of the February backlog has already been cleared and expects to resolve the remaining backlog by the end of March 2025.
The company remains confident that it will address these concerns and continue its expansion in the electric vehicle market.
“Our focus remains on resolving the backlog efficiently and continuing to serve our customers with transparency and reliability,” the company stated.
-- IANS
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