Ola Electric on Wednesday announced that it is renegotiating contracts with its vehicle registration agencies with an aim to reduce cost and enhance registration process efficiencies. In a regulatory filing, Ola said that it is having discussions to revise existing agreements with Rosmerta Digital Services Private Ltd and Shimnit India Private Ltd as part of a sales overhaul.
The company informed that due to ongoing negotiations and optimisation of the registration process, its registration numbers for the month of February 2025 (on VAHAN portal) will be temporarily impacted. However, the sales will continue to be strong through February 2025 and the dip in registration will be streamlined in the next few weeks, it added.
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The company statement on exchanges stated, “We would like to inform you that we are renegotiating the terms of agreement with our agencies, namely Rosmerta Digital Services Private Limited and Shimnit India Private Limited, to reduce cost and enhance registration process efficiencies.”
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 electric scooter maker said that the renegotiation process with Rosmerta Digital Services and Shimnit India is currently on and is aimed at reducing costs and improving the efficiency of the registration process. “As a result of these ongoing negotiations, the registration numbers for the month of February 2025, as reflected on the VAHAN portal, will be temporarily impacted, while there will be no change in sales,” it said.
Earlier this month, Ola Electric had released its fiscal third quarter earnings report with a widened loss of Rs 564 crore from Rs 376 crore in the same quarter last year. Revenue too had dropped by 19 per cent YoY to Rs 1045 crore from Rs 1296 crore. In a statement posted on the exchanges, Ola Electric had said that the “company expects their path to profitability to be driven by improvements in Gross Margin, Optimization in Operating Costs and Operating Leverage through product portfolio expansion, category expansion (motorcycles, Gig &Z) and technology leadership”.
Shares of Ola Electric were up 0.51 per cent at 11:20 am at a trading price of Rs 60.65.
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