Ola Electric is facing regulatory scrutiny over one of the most important things an automaker tells investors: how many vehicles it has actually sold.
The Securities and Exchange Board of India (SEBI) is investigating disclosures made by Ola Electric, including a February 2025 announcement in which the company said it had sold more than 25,000 electric scooters and had a market share of over 28%.
This is from Page 29 of the Disclosure Ola Electric has made to the Bombay Stock Exchange,
There are pending litigations against our Company, our Subsidiaries and our Promoter such as (i) a showcause notice dated April 10, 2026 (“Notice”) issued by SEBI to our Company and our Promoter, under Rule 4(1) of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 read with the SEBI Act, 1992, and (ii) matters against our Subsidiary under Section 9 of the Insolvency and Bankruptcy Code, 2016. Any adverse decision in such proceedings may render an adverse impact on our Company.
The issue is that the number announced to the market did not match the number of vehicles showing up in government registration data on the VAHAN portal. The VAHAN portal records registrations of vehicles in India against each manufacturer. And this is where things get complicated.
In February 2025, Ola announced that it had achieved 25,207 sales/orders. At the time, the company explained that these were paid and confirmed customer orders, rather than simple bookings involving a small token amount.
Ola also said that the government’s VAHAN registration system was facing disruption because the company was moving its registration process in-house. It therefore used paid and confirmed orders to report its February sales figure.
For the average car or scooter buyer, the distinction might sound insignificant. It isn’t. A customer placing an order does not necessarily mean that a vehicle has been delivered.
A vehicle generally has to be registered before it can legally hit the road. Ola itself has stated that it recognises revenue only after the vehicle is delivered to the customer following completion of registration.
According to the SEBI allegations, the 25,207 figure represented confirmed customer orders, rather than actual completed sales. The regulator found that only 5,341 vehicles had been registered, while revenue had been recognised on just 2,848 vehicles at the relevant point.
That created a huge gap between the number Ola highlighted publicly and the number of scooters that had actually completed the registration and delivery process. SEBI is also examining whether Ola sufficiently explained to investors that it had changed the basis on which it was reporting its numbers. That is the heart of the controversy.
Yes, and no. SEBI has alleged that Ola’s disclosures were misleading. That is not the same as saying Ola has been legally found guilty of fraud.
Ola has maintained that there was no malicious intent behind its reporting and has provided explanations to the regulator. The company has also pursued a settlement with SEBI without admission or denial of liability. In other words, the matter is still being resolved.
But the controversy is serious because Ola Electric is a listed company. When a listed company announces sales numbers, investors use those numbers to judge how quickly the business is growing, how strong demand is and whether the company deserves a higher or lower valuation.
Imagine two companies. Company A says it sold 25,000 scooters. Company B says it sold 5,000 scooters. An investor would naturally assume Company A is performing far better.
But if that 25,000 figure actually includes thousands of orders that have not yet resulted in registered and delivered vehicles, the picture becomes very different. That is essentially why SEBI is examining Ola’s disclosures.
The regulator is also looking at other statements made by Ola, including claims surrounding its rapid expansion of sales and service outlets and timelines for products such as the Roadster. For Ola Electric, therefore, this is not simply a dispute over a number.
It is about how a publicly listed company communicates its business performance to investors. If found guilty, Ola Electric will have to change the way it counts sales. It could also lead to investors and the general public disbelieving the company when it makes a claim. That’s very bad for reputation. Trust, and reputation, are everything. Ola Electric clearly seems to be on the backfoot here.