In a regulatory filing, Ola Electric Mobility stated that it is working to renegotiate agreements with Rosmerta Digital Services Private Limited and Shimnit India Private Limited. The objective is to lower costs and improve the efficiency of the registration process.
The company had initially signed an ‘Agencies Agreement’ with these two firms for the registration of vehicles in the respective regional RTOs. The agreement with Rosmerta Digital Services was signed on December 16, 2021, while the contract with Shimnit India was finalised on December 27, 2021.
Ola Electric follows a direct-to-consumer sales model, unlike conventional automakers that use dealership networks for vehicle registration. Consequently, it relies on third-party agencies like Rosmerta and Shimnit India to handle registration formalities.
Due to the ongoing negotiations and optimisation of the registration process, Ola Electric stated that its registration numbers for the month of February 2025 (on the VAHAN portal) will be temporarily impacted.
However, the company reaffirmed that its sales will remain strong through February 2025, and while registrations may temporarily decline, the process is expected to stabilise in the coming weeks without affecting overall sales figures.
The Federation of Automobile Dealers Associations (FADA) has noted that any modification to agency contracts could temporarily influence registration figures.
Shares of Ola Electric Mobility gained 2% on Wednesday to record an intraday high of ₹61.59 per piece on the BSE and were seen trading flat, up 0.5% to ₹60.63 each in the afternoon session at around 1 pm.
In the quarter ended December 31, 2024, Ola Electric’s net losses widened to ₹564 crore in comparison to ₹376 crore witnessed in the year-ago period. The figure is also higher than the ₹495 crore loss it had reported in the September quarter.
The company’s revenue declined 19.4% year-on-year (YoY) to ₹1,045 crore versus ₹1,644 crore during the June quarter and ₹1,214 crore during the September period. Ola Electric had offered multiple festive discounts in Q3 FY25, which impacted revenue during the quarter.