Ola Electric, India’s leading electric two-wheeler manufacturer, is taking significant steps to streamline operations and reduce costs by bringing vehicle registration processes in-house. This strategic move aims to enhance efficiency and address challenges in the company’s registration backlog.
Transitioning to In-House Vehicle Registrations
Traditionally, Ola Electric outsourced vehicle registration tasks to external vendors, notably Rosmerta Digital Services Pvt. Ltd., at a cost of ₹1,500 to ₹1,800 per vehicle. By shifting to an in-house team, the company anticipates reducing this expense to approximately ₹300 per registration, achieving substantial cost savings.
Financial Obligations and Registration Backlog
Despite this transition, Ola Electric reportedly owes ₹17-18 crore to Rosmerta, contributing to a registration backlog. In February 2025, the company managed to register only about one-third of the scooters it sold, highlighting the urgency of resolving these financial and operational issues.
Impact on Sales and Market Position
The company’s sales performance has experienced fluctuations. In October 2024, Ola Electric reported a 74% increase in vehicle registrations, totaling 41,605 units. However, subsequent months saw declines, with a 27% drop in May and a further 36% decrease in June 2024, raising concerns about demand and market dynamics.
Strategic Cost-Cutting Measures
In addition to bringing registrations in-house, Ola Electric is renegotiating contracts with vehicle registration agencies to further reduce expenses. This renegotiation may temporarily affect registration numbers on the VAHAN portal, but the company expects operations to normalize in the coming weeks.
Conclusion
Ola Electric’s initiative to internalize vehicle registration processes underscores its commitment to operational efficiency and cost reduction. While challenges such as outstanding financial obligations and registration backlogs persist, these strategic measures aim to strengthen the company’s position in the competitive electric two-wheeler market.
