NEW DELHI, Feb 19:
Ola Electric, the leading manufacturer of electric scooters in India, announced on Wednesday that it is in the process of renegotiating contracts with its vehicle registration agencies. This adjustment period is expected to temporarily affect the registration numbers displayed on the government’s VAHAN portal, although actual sales will not be impacted.
According to a stock exchange filing, Ola Electric is in talks to revise its contracts with Rosmerta Digital Services Private Ltd and Shimnit India Private Ltd to facilitate a sales overhaul.
The company stated that this would “temporarily affect” the registration numbers reflected on the VAHAN portal throughout February.
“We are in the process of renegotiating agreements with our agencies, namely Rosmerta Digital Services Private Ltd and Shimnit India Private Ltd, to lower costs and improve efficiencies in the registration process. As we continue these discussions and optimize the registration process, the registration numbers for February 2025 (on the VAHAN portal) will see a temporary impact. Nevertheless, our sales remain robust throughout February 2025, and we expect any drop in registration numbers will be resolved within the coming weeks,” the company added.
In its exchange filing, Ola Electric indicated that these negotiations are aimed at reducing expenses and modifying the registration process.
Ola Electric operates through a direct-to-consumer strategy and does not utilize automobile dealerships, relying instead on its own company stores.
The firm clarified that due to the ongoing negotiations, vehicle registration numbers on the VAHAN portal would be affected during February 2025, but normal operations are anticipated to resume in the following weeks.
Rosmerta Digital Services and Shimnit India are responsible for managing vehicle registration processes for Ola Electric across multiple regions. The full impact of these negotiations on Ola Electric’s cost-cutting efforts and registration process improvements is yet to be determined. (PTI)
