India’s electric vehicle (EV) revolution has hit an unexpected speed bump. Ola Electric, once considered the undisputed leader in the electric two-wheeler market, has announced plans to shut down around 150 retail outlets across India. The decision comes after declining sales considered necessary by the company to control operational costs and restructure its business strategy.
The move signals a major shift for the Bengaluru-based EV company, which had aggressively expanded its offline retail presence over the past few years. However, falling customer footfall, rising competition, and ongoing product-related complaints have forced the company to rethink its expansion model.
Ola Electric Network to Shrink from 700 to 550 Stores
According to company developments, Ola Electric will reduce its retail network from nearly 700 physical locations to about 550 stores nationwide. The goal is to cut offline expenses and focus on improving efficiency rather than maintaining large showrooms with low customer visits.
Industry experts say this decision reflects changing consumer behavior. While Ola initially relied heavily on an online-first sales approach, the company later expanded physical experience centers to boost buyer confidence. But declining showroom visits and weaker demand have made many locations financially unsustainable.
By trimming underperforming outlets, Ola aims to streamline operations and allocate resources toward technology upgrades, product quality improvements, and customer service.
From Market Leader to Sharp Decline in Market Share
Just a few years ago, Ola Electric dominated India’s electric scooter market with nearly 50% market share, becoming a symbol of the country’s EV transition. Its aggressive pricing, modern designs, and digital-first approach helped it quickly capture customer attention.
However, recent data paints a very different picture.
By early February 2026, Ola Electric’s market share reportedly fell to around 4.2%, with only 2,575 units sold during the period. The dramatic drop has surprised analysts and investors alike, especially considering the company’s earlier growth momentum.
Experts believe the decline is not caused by a single factor but rather a combination of operational challenges, increased competition, and customer trust issues.
Customer Complaints Add Pressure on Brand Image
One of the biggest challenges facing Ola Electric means customer experience concerns. Several users have reported recurring issues such as:
- Motor failures
- Software-related glitches
- Geofencing problems affecting scooter performance
- Service delays and spare-part availability issues
While the company has attempted software updates and service improvements, negative customer feedback has spread rapidly across social media platforms, influencing buyer confidence.
In India’s highly competitive two-wheeler market, reliability plays a crucial role. Even small technical issues can significantly affect purchasing decisions, especially for first-time EV buyers who already worry about battery life and maintenance.
Stock Price Near Record Lows After IPO Decline
The company’s financial performance has also reflected growing challenges. Ola Electric’s shares are currently trading near record lows, around ₹26.55, marking a steep decline of nearly 64% compared to its 2025 IPO price.
Investor sentiment has weakened due to slower-than-expected sales growth and concerns about profitability. Analysts suggest that aggressive expansion combined with execution difficulties may have strained the company’s financial stability.
The stock decline has intensified pressure on management to demonstrate a clear turnaround strategy in the coming months.
Rising Competition from Traditional Auto Giants
Another major reason behind Ola Electric’s slowdown is the rapid rise of competitors. Established automotive companies have entered the electric scooter market with strong manufacturing experience and trusted service networks.
Key competitors include:
- TVS Motor Company
- Bajaj Auto
- Ampere Electric
These brands already possess widespread dealership and service infrastructures, giving customers greater confidence in after-sales support an area where newer EV startups often struggle.
Additionally, traditional manufacturers have improved battery technology, pricing strategies, and reliability standards, making the competition tougher than ever.
Shift in Strategy: Efficiency Over Expansion
Industry analysts view Ola Electric’s store closures not just as a cost-cutting measure but as a strategic reset.
Instead of focusing on rapid expansion, the company appears to Ifocus on:
- Strengthening product quality
- Enhancing customer service networks
- Improving operational efficiency
- Optimizing retail presence in high-demand regions
This shift indicates a more mature phase for India’s EV market, where sustainable growth matters more than aggressive scaling.
Experts believe companies that balance innovation with reliability and service support will ultimately win long-term consumer trust.
What This Means for India’s EV Market
Despite Ola Electric’s current struggles, the broader Indian EV industry continues to grow steadily. Government incentives, rising fuel prices, and increasing environmental awareness are still pushing consumers toward electric mobility.
However, the situation highlights an important lesson: rapid growth alone does not guarantee long-term success. Execution quality, customer satisfaction, and consistent performance are equally critical.
The EV sector is now entering a phase where buyers are becoming more informed and selective. Brands must deliver not only advanced technology but also dependable ownership experiences.
Can Ola Electric Stage a Comeback?
The big question now is whether Ola Electric can regain its position in the market.
The company still holds strong brand recognition and technological capabilities. If it successfully addresses product reliability concerns and rebuilds customer trust, analysts believe a recovery is possible.
Upcoming product improvements, better service infrastructure, and optimized retail operations could help stabilize sales in the coming quarters.
However, the road ahead remains challenging as competition intensifies and consumer expectations continue to rise.
Turning Point for India’s EV Pioneer
Ola Electric’s decision to close 150 stores marks a significant moment in India’s electric vehicle journey. Once a market disruptor leading the EV revolution, the company now faces the reality of a competitive and rapidly evolving industry.
While declining sales and shrinking market share present serious challenges, the restructuring effort may also offer an opportunity for renewal. By focusing on efficiency, product quality, and customer satisfaction, Ola Electric hopes to rebuild momentum and regain consumer confidence.
The coming year will likely determine whether this strategic reset becomes a comeback story or a warning lesson in the fast-moving world of electric mobility.
