Ola Electric is going through the toughest period in its seven-year lifetime. That’s no exaggeration as even the most ardent supporter of the Indian EV maker is starting to see how steep the uphill climb is.

Following its showdown with regulators and various government authorities in recent months, and allegations of sales inflation, Ola Electric saw its revenue slump 62% YoY to INR 611 Cr in Q4, which was also a 42% decline quarter-on-quarter (QoQ).

This tepid showing has once again piled the pressure on Bhavish Aggarwal. In a post-earnings call, Aggarwal called Q4 a “complex quarter”. However, he said that not only the regulatory issues but also the “confusion” related to February sales numbers were now behind.

Even so, one has to ask whether Aggarwal’s ambitious plans for Ola Electric’s next growth phase is missing one too many pieces.

Regulatory Overhang On Ola Electric

While some regulatory challenges might be behind the company after its overhaul of the registration process and distribution network in the past six months, things might not be as straightforward going ahead given its track record, according to experts.

Saharsh Damani, CEO of the Federation Of Automobile Dealers Associations (FADA), in a recent post on social media pointed out that once hailed as a disruptor, Ola Electric is now in the eye of a storm. “Disruption alone doesn’t guarantee sustainability. Culture, governance, and stakeholder trust matter more than hype,” he said.

Speaking to Inc42, Damani said that Ola Electric could initially take up the leading position in the EV two-wheeler industry because legacy players like TVS Motor, Bajaj Auto, Hero Motocorp, and Honda were absent from the market. Now, with these players gearing up their sales, and Ola Electric already reeling under pressure from every side, the future looks uncertain, he said.

Notably, the company’s revenue has gone below Ather’s in Q4 as the latter posted an operating revenue of INR 676 Cr.

“Ola Electric’s auditors have already raised questions on whether the company can remain a going concern in the coming days. Aside from the existing loss of trust, the recent death by suicide of an employee at Bhavish’s other entity, Krutrim AI, has made the situation worse for Ola,” said Damani.

Meanwhile, Damani is also of the opinion that the biggest uncertainty that looms for EV OEMs right now is the complete absence of subsidy for vehicles in the near future. For Ola Electric and every other electric two-wheeler company, this would be the biggest test in the coming days on whether they can survive this shift expected within a year or two.

“Whether it’s........

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