ICRA has downgraded the credit rating of Ola Electric due to a sharp decline in sales, raising concerns over the electric vehicle (EV) maker’s financial health. According to the agency, the downgrade reflects weakening cash flows, rising inventory levels, and persistent challenges in scaling up deliveries amid fierce market competition.
The report indicates that while Ola Electric was once a leading name in India’s EV revolution, recent months have seen sales fall short of expectations. The company’s ability to raise fresh funding or improve operational efficiencies will be crucial to regain investor confidence.
ICRA also flagged issues such as cost pressures, delayed new product launches, and intensified competition from rivals like Ather Energy and TVS Motor as key challenges ahead.
Industry experts suggest that Ola Electric will need to realign its market strategy, enhance dealer networks, and improve after-sales services to stabilize its position in India’s fast-growing EV market.
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Source (full link):
https://startupnews.fyi/2025/05/03/ola-electrics-credit-rating-slashed-by-icra-amid-falling-sales/
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