Ola EV Registrations: Vehicle Registration Subsidiary Company Files Insolvency Proceedings

Quick Highlights:

• Rosmerta Digital Services, a registration company has filed for insolvency proceedings against the brand.

• Rosmerta is the wholly-owned subsidiary of Ola Electric.

• Might affect the company’s registration figures this month, but only time will tell.

In February, Ola Electric was reworking its contracts with vehicle registration company Rosmerta Digital Services Limited, and Mumbai-based HSRP (High-Security Registration Plates) maker Shimnit India. Now, Rosmerta Digital Services Limited has filed a petition seeking Corporate Insolvency Resolution Process (CIRP) against Ola Electric. Rosmerta is Ola Electric’s wholly-owned subsidiary, and an operational creditor.

Rosmerta says the insolvency proceedings are over a default in payment over its services rendered. However, Ola Electric “strongly disputes” the claims made, and has sought appropriate legal advice, according to its letter filed to the National Stock Exchange of India. The EV maker also says it will take the appropriate steps to protect its interests and also object to the said allegations. 

Seemingly a legal setback, the filing comes just after the company finished implementing an initiative to reduce overall expenditures and improve customer experience. With this, it claimed to have saved Rs 90 crore a month, and expects to have an EBITDA break-even (Earnings earnings before interest, taxes, depreciation, and amortization) in Q1, FY2026.

Compared to a traditional dealership setup which generally involves a third-party dealer owner and a third party registration agency, Ola Electric sells its electric vehicles via company-owned stores and uses its own subsidiary for registrations. Having bottlenecks on the registration front might be a challenging issue for the brand as it may affect its dealerships across the country. We’ll have to wait and see how it is affecting the registration numbers for this month and the following months.