Ola Electric Faces Supplier Insolvency Petitions

Electric vehicle maker Ola Electric is facing insolvency petitions from two of its suppliers, Anevolve Mando E-Mobility Pvt Ltd and Sterling E-Mobility Solutions Pvt Ltd. The Bhavish Aggarwal-led company stated that the matters stem from an ongoing arbitration concerning warranty and performance disputes related to supplied components.

The petitions were filed with the National Company Law Tribunal over alleged unpaid dues. Ola Electric had previously raised concerns about the warranty and performance of certain parts from these vendors. When these issues remained unresolved, the company initiated arbitration proceedings.

According to Ola Electric, the suppliers filed the insolvency petitions under India's Insolvency and Bankruptcy Code after the arbitration proceedings began. The company maintains that the claims relate to genuine, pre-existing disputes that are already under arbitration and is contesting the petitions.

The situation arises as Ola Electric seeks to improve its operational performance after a challenging period marked by declining sales and market share. Despite these challenges, the company has reported a narrowing of its net loss and its first positive quarterly operating cash flow.