Ola Electric in talks to cut costs on registration, VAHAN data to see temporary dip

Ola Electric, India’s largest electric scooter maker, on Wednesday announced it is renegotiating contracts with its vehicle registration agencies- a period during which actual sales will not be impacted but the registration numbers showing on the government’s VAHAN portal may see a temporary blip.

In a stock exchange filing, Ola said it is discussing revising existing agreements with Rosmerta Digital Services Private Ltd and Shimnit India Private Ltd as part of a sales overhaul.

This will “temporarily affect” registration numbers reflecting on the VAHAN portal in February.

“We are renegotiating the terms of agreement with our agencies, namely Rosmerta Digital Services Private Ltd and Shimnit India Private Ltd, to reduce cost and enhance registration process efficiencies. Due to ongoing negotiations and optimisation of the registration process, our registration numbers for the month of February 2025 (on VAHAN portal) will be temporarily impacted. Our sales continue to be strong through February 2025 and the dip in registration will be streamlined in the next few weeks,” it said.

According to the company’s exchange filing, the negotiations aim to reduce costs and modify the registration process.

Ola Electric works with the registration agencies as it does not operate through automobile dealerships but only through company-owned stores as part of a direct-to-consumer strategy.

The firm notified that the vehicle registration numbers on the VAHAN portal will be affected during February 2025 due to these ongoing negotiations. The company states that the registration process will return to normal in the next few weeks.

The two agencies, Rosmerta Digital Services and Shimnit India handle vehicle registration processes for Ola Electric across various regions. The outcome of these negotiations and their specific impact on Ola Electric’s efforts to reduce costs and streamlining of registration process remains to be seen.

Ola Electric reported widening losses in the three months ended December 31, bogged down by lower sales of its two-wheelers during the period. It reported a quarterly net loss of Rs 562 crore in FY25 compared to Rs 374 crore in the previous year. 

Additionally, the company reported a 19.4% decline in revenue from operations in the third quarter to Rs 1,045 crore.