Ola Electric Switches to Dealer Network After Sales Slump

Ola Electric Mobility Ltd. is abandoning its direct-to-consumer retail strategy in favor of a nationwide dealer network for sales and service. The company aims for full implementation of the new model by Diwali in November 2026, marking a significant reversal for founder Bhavish Aggarwal, who had previously described traditional dealerships as a "relic of the past."

Under the new structure, existing company-owned stores will transition into brand experience centers, while third-party dealer partners will handle vehicle sales, deliveries, and after-sales support. This pivot is designed to reduce operating costs and alleviate balance sheet strain following a reported net loss of 18.3 billion rupees for the fiscal year ending March 31. The company also intends to use the network to address long-standing customer complaints regarding spare-parts shortages and repair delays.

The shift follows a sharp decline in market share. Registrations peaked at 4.29 lakh units in 2024 before dropping to 2.05 lakh units in 2025. By July 2026, Ola had fallen out of the top-selling electric scooter rankings, overtaken by TVS, Bajaj, and Ather, who leveraged dealer networks to penetrate Tier 2 and Tier 3 markets. To support the transition, Ola has appointed former Hyundai Motor India President BVR Subbu as Senior Advisor. The company's stock price has mirrored this decline, falling from post-listing highs above Rs 150 to approximately Rs 40.