Ola Electric postpones Roadster X deliveries amid sales probe

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Ola Electric, India’s largest electric two-wheeler manufacturer, has once again delayed the delivery timeline of its highly anticipated Roadster X motorcycle. Originally scheduled for mid-March 2025, and later rescheduled to April, the new expected delivery start is now May 2025. This marks the second delay in two consecutive months. The latest announcement was made via a late-night stock exchange filing on April 30, triggering questions around the company’s delivery capabilities, regulatory compliance, and sales transparency.

This delay coincides with ongoing regulatory scrutiny. Multiple government bodies—including SEBI, the Ministry of Heavy Industries, and the Ministry of Road Transport and Highways—have begun investigating Ola Electric’s sales disclosure practices. Specifically, the company is alleged to have included undelivered Roadster X units in its February sales data. Ola had claimed 1,395 confirmed orders for the model, even though the vehicles hadn’t been delivered or registered.

Further complications have arisen following insider trading allegations against Ola Electric’s top executive, Claudio Zizzo. Reports indicate he may have engaged in trading activities using privileged information, a claim Ola strongly denies, calling it a routine ESOP transaction.

These developments come as the EV maker faces store raids across various Indian states for operating showrooms without proper trade certification. Simultaneously, customer complaints about delivery delays, service issues, and defective vehicles have attracted the Central Consumer Protection Authority’s attention. Ola Electric’s market share dropped slightly in April, losing ground to rival TVS.

At this critical juncture, Ola’s reputation and investor confidence are under pressure. The delay in Roadster X deliveries, especially amidst regulatory heat, poses challenges to its ambitions of dominating India’s EV motorcycle market. The Startups News continues to monitor the evolving situation and its implications for India’s broader electric mobility sector.

1. Ola Electric: India’s Ambitious EV Startup

Founded in 2017 by Bhavish Aggarwal, Ola Electric is a spinoff from ride-hailing unicorn Ola Cabs. It operates under ANI Technologies and is headquartered in Bengaluru. Aggarwal, an IIT Bombay alumnus, built Ola Electric to accelerate India’s transition to sustainable mobility. He envisioned a fully indigenous electric vehicle ecosystem that could rival global leaders in design, manufacturing, and technology.

The company’s core revenue model hinges on selling electric two-wheelers and offering battery-as-a-service. Their flagship products—the Ola S1 and S1 Pro electric scooters—have made waves in the market, commanding a sizable portion of India’s EV two-wheeler segment. Ola Electric also announced plans to enter electric car manufacturing and battery cell production.

In terms of funding, Ola Electric has secured over $800 million from investors such as SoftBank, Tiger Global, Temasek, and the Government of India’s PLI (Production-Linked Incentive) scheme for advanced cell chemistry.

Aggarwal’s vision manifested into a mega-manufacturing facility, the ‘Futurefactory’, located in Krishnagiri, Tamil Nadu. This integrated EV facility is one of the world’s largest, aimed at producing 10 million vehicles annually.

2. Roadster X Launch Timeline and Delays

Ola Electric unveiled the Roadster X—touted as the fastest electric motorcycle in its category—on February 5, 2025. Priced between Rs 84,999 and Rs 1,14,999, depending on the battery variant (2.5 kWh, 3.5 kWh, and 4.5 kWh), the vehicle quickly generated consumer interest. Initially, Ola promised deliveries by mid-March.

However, NDTV Profit reported that the motorcycle had not even cleared the homologation process two weeks before the deadline. This critical certification is mandatory for commercial vehicle deployment in India. The delivery schedule was quietly moved to April.

On April 11, Ola Electric claimed that Roadster X had started rolling out from its Futurefactory. Yet, by April 30, the company issued another delay notice. Deliveries were now scheduled to begin in May. No specific date has been committed.

3. Regulatory Heat Intensifies Over Sales Disclosures

What makes the Roadster X delay more controversial is Ola Electric’s sales disclosure practice. In a letter dated March 21 to the Ministry of Road Transport and Highways, Ola stated it had included 1,395 “confirmed orders” of Roadster X in its February sales report. These units had neither been delivered nor registered.

This drew flak from regulators. The Ministry of Heavy Industries and Ministry of Road Transport and Highways started investigating possible violations of sales reporting norms. According to CNBC and NDTV Profit, SEBI also began probing potential mismatches between reported sales and actual vehicle registrations.

Despite mounting pressure, Ola insists the reported orders were backed by full payments and not mere token bookings.

4. Insider Trading Allegations and Denials

Adding to the controversy, SEBI is reportedly investigating insider trading allegations involving Claudio Zizzo, Ola Electric’s Vice President of Electronics. Zizzo allegedly bought over 62,000 shares on the day Ola announced a new e-scooter launch on social media—before officially notifying the exchanges. The shares were sold shortly after, around the time Ola stock hit the upper circuit.

Ola Electric strongly refuted these claims, calling the transactions routine ESOP redemptions rather than open-market purchases. In a stock exchange clarification, the company labeled the media report factually inaccurate.

Nevertheless, the timing of these trades has sparked doubts about governance standards within the company.

5. Operational Challenges and Consumer Grievances

The regulatory probes are just one part of the larger storm. Ola Electric is facing investigations in several Indian states, including Maharashtra and Madhya Pradesh, for allegedly operating showrooms without valid trade certificates. These are legal prerequisites under the Motor Vehicles Act.

Meanwhile, the Central Consumer Protection Authority (CCPA) is examining complaints about delayed deliveries, service lapses, and alleged sale of defective vehicles. This has further damaged the brand’s image, especially among early adopters.

6. Market Impact and Sales Decline

Ola Electric’s share performance has taken a hit amid these cascading issues. As of May 1, 2025, the stock has dropped over 43% year-to-date. In April alone, Ola’s two-wheeler registrations fell 16% from March, totaling 19,709 units.

Though this aligns with a broader market trend, Ola’s 21% market share now trails TVS Motor’s 21.5%. Investor sentiment remains cautious as regulatory uncertainties persist.

7. Learnings for Startups and Entrepreneurs

Ola Electric’s ongoing saga serves as a case study in growth-phase missteps. Startups chasing rapid scale must ensure robust regulatory compliance and transparency in operations. Including undelivered products in sales data may provide short-term gains but risks long-term credibility.

Strong governance, timely disclosures, and strict adherence to product delivery timelines are essential. Ola’s situation also highlights how non-compliance in one area—like showroom certification—can spiral into multiple regulatory headaches.

For entrepreneurs, the key takeaway is clear: scale with integrity. Disruptive innovation must be backed by operational discipline, especially when public markets and consumer trust are involved.

8. Conclusion

With the Roadster X yet to reach customers, Ola Electric finds itself navigating regulatory scrutiny, market volatility, and consumer dissatisfaction—all at once. The company must now focus on delivering promised products, resolving legal concerns, and restoring trust.

The Startups News will continue tracking this story to bring you real-time updates on one of India’s most watched electric mobility ventures.

Why This Story Matters: The Startups News Perspective

At The Startups News, we track India’s boldest startup moves—and scrutinize them with clarity and accountability. Ola Electric’s repeated Roadster X delays reveal a deeper issue beyond product setbacks. They reflect what happens when high-growth startups outpace their own operational capacity and regulatory obligations.

Startups thrive on ambition. But ambition without compliance, execution, and transparency can derail even the most well-funded ventures. Ola Electric raised billions, built hype, and secured a leadership spot in India’s EV market. Yet, as this saga shows, even unicorns falter when governance takes a back seat.

This story isn’t just about a delayed electric bike. It’s about lessons every startup in India’s ecosystem must learn. From founders promising delivery dates to investors reading between revenue lines—accountability, honest reporting, and legal clarity matter more than ever.

As the Indian startup ecosystem matures, scrutiny will only increase. At The Startups News, we’ll keep asking the hard questions and bringing you the full picture—beyond the headlines.