On February 20, 2026, reports emerged that Ola Electric plans to drastically reduce its physical store count to approximately 550 by the end of March 2026. This “structural reset” marks a massive pullback from its previous ambitious goal of establishing 4,000 locations across India.
The company has already trimmed its network to roughly 700 outlets, meaning an additional 150 stores are expected to close in the coming weeks.
Why is Ola Electric Closing Stores?
The downsizing is part of a broader strategy by CEO Bhavish Aggarwal to cut operational “burn” and pivot toward long-term financial sustainability.
- Market Share Collapse: Ola Electric’s market share in the electric two-wheeler segment has plummeted from a high of ~26% a year ago to just 4.2% in the first half of February 2026.
- Service Crisis: The company is struggling with a mounting backlog of service requests and customer complaints regarding product reliability. Management stated they are realigning the retail footprint to focus on improving service execution rather than short-term volume.
- Cost Structure Reset: By closing “Experience Centres” and underperforming showrooms, the company aims to significantly lower its monthly operating expenses (Opex).
- Regulatory Issues: Several outlets were recently forced to shut down by government authorities (particularly in Maharashtra) for operating without valid trade certificates.
Financial & Operational Impact
The news of the store closures sent Ola Electric’s shares to a record low of ₹26.83 on the NSE.
| Metric | Q3 FY26 Performance (Reported Feb 2026) |
| Revenue | ₹470 Crore (Down 55% Year-over-Year) |
| Net Loss | ₹487 Crore (Slight improvement from ₹564 Cr) |
| Vehicle Deliveries | 32,680 Units (Down 61% Year-over-Year) |
| Market Position | Dropped to 5th place (behind TVS, Bajaj, Hero, and Ather) |
The Path Forward: “Focus on the Core”
Under the new “structural reset,” Ola Electric is shifting its focus away from rapid physical expansion toward:
- Vertical Integration: Leveraging its Gigafactory to produce its own lithium-ion cells (4680 Bharat Cells) to lower costs.
- Automation: Increasing automation in front-end and service operations to improve speed and discipline.
- Hyperservice: Upgrading existing locations into “Hyperservice Centres” that guarantee same-day repairs.
“We chose to realign our retail footprint, cost structure, and operating model to a sustainable steady state by fixing the fundamentals and not optimising for short-term volume.” — Ola Electric Shareholders’ Letter, Feb 2026.
