Ola Electric shares fell 2% to record low of 26.83 rupees after reports the company plans to close approximately 550 physical stores in the upcoming March quarter. The move comes as the Indian electric vehicle manufacturer continues to grapple with persistent operational challenges and declining market position.

The company faces mounting difficulties with a 50% sales slump in the December quarter, eroding margins due to rising costs. Founder Bhavish Aggarwal acknowledged consumer trust issues related to product quality and service problems, though he stated the company is working toward improvements without providing a timeline for reaching breakeven.

Ola's troubles intensify as legacy automakers TVS and Bajaj, along with premium rival Aether, capture market share. The store closures represent a significant retreat from the company's expansion strategy, reflecting the harsh realities of India's competitive EV market where product reliability and service quality have become decisive factors.