India’s electric vehicle (EV) dream was supposed to be a smooth ride toward a greener future, but lately, it feels more like a bumpy road littered with scandals and setbacks.
Companies like Ola Electric and BluSmart, once hailed as pioneers, are now making headlines for all the wrong reasons, while others, like Log9 Materials, face their own controversies.
Yet, not every EV company is stalling, some are quietly accelerating. The following piece showcases what’s really going on with EVs in India.
The Ola Electric Storm
Ola Electric, India’s biggest electric scooter maker, was once the poster child for the country’s EV ambitions. But in 2024 and 2025, it’s been hit by a wave of troubles. Safety issues, like scooter fires and crashes, have shaken consumer trust.
Sales have plummeted, with reports noting a 43% drop in stock value from its peak in August 2024. The company’s CEO, Bhavish Aggarwal, hasn’t helped matters. His public spat with comedian Kunal Kamra over poor customer service went viral, amplifying concerns about Ola’s after-sales support.
Additionally, the Central Consumer Protection Authority (CCPA) issued a show cause notice to Ola Electric under the Consumer Protection Act, 2019, in response to a surge in complaints about its electric scooters.
The National Consumer Helpline received 10,644 complaints against Ola between September 1, 2023, and August 30, 2024. Of these, 3,389 related to service delays, 1,899 to delivery delays, and 1,459 to unfulfilled promised services. Customers also alleged manufacturing defects and unprofessional behaviour from the company’s representatives.
Meanwhile, the Securities and Exchange Board of India (SEBI) warned Ola for sharing sensitive company updates on social media before informing investors, highlighting lapses in corporate governance.
Not to mention, the Union Ministry of Road Transport and Highways also issued a show cause notice to Ola Electric over missing trade certificates. The ministry demanded that Ola disclose the current number of operational stores and service centres, as well as details of all trade certificates obtained over the past three years.
The notice explicitly stated, “You are hereby directed to furnish response to the aforementioned queries within seven days from the date of receipt of this letter, in order to avoid any adverse action.”
It’s hard to ignore the pattern of how Ola’s ambition to lead the global EV market is being undermined by governance issues and operational missteps of their own.
BluSmart’s Fall from Grace
BluSmart, an EV ride-hailing startup, was poised to challenge giants like Ola and Uber. But in April 2025, it crashed into a scandal that’s been called one of India’s biggest startup frauds.
Gensol’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, were the prime accused in this scam. SEBI’s investigation revealed that the brothers systematically diverted hundreds of crores in company funds for personal enrichment.
Notably, ₹43 crore intended for EV purchases was instead used to buy a luxury flat in Gurugram’s upscale The Camellias complex, initially booked under their mother’s name and later transferred to their partnership firm, Capbridge Ventures.
The probe also exposed extravagant personal expenditures, including ₹26 lakh on golf sets, nearly ₹23 lakh to pay off credit card dues, and around ₹8 lakh for interior decoration.
But the financial misconduct didn’t stop there.
The Jaggis manipulated Gensol’s stock price by using company funds to artificially inflate trading volumes through a subsidiary, Wellray, with SEBI noting that “about 99% of the stock's volume was created using funds from Wellray” over two and a half years. Forged ‘no default’ letters from lenders were also produced to mislead regulators and investors about the company’s financial health.
The fallout was swift: BluSmart suspended services in Delhi, Mumbai, and Bengaluru, leaving drivers and commuters stranded. The Delhi High Court stepped in, ordering a status quo on 95 EVs leased to BluSmart, further complicating its operations.
Moreover, around 80 BlueSmart drivers have gathered at Delhi’s Jantar Mantar on 4th May 2025 to protest job losses and urge the central government to intervene.
For a company that promised to disrupt urban mobility, this fraud has exposed deep cracks in trust and accountability.
Log9 Materials’ Cloudy Spotlight
Log9 Materials, a battery tech startup, has also faced scrutiny. While it’s raised significant funding and partnered with major players, recent reports have questioned its battery performance and scalability claims.
Log9 Materials’ downfall can be traced to a series of strategic misjudgments, particularly its bold bet on lithium-titanate (LTO) battery technology. While LTO batteries offer advantages like faster charging, longer cycle life, and enhanced safety, they suffer from lower energy density and higher costs compared to lithium iron phosphate (LFP) batteries.
Critically, LTO batteries underperform in India’s hot climate, draining faster and delivering less range, key drawbacks for commercial EV operators who prioritize upfront cost and range over technical superiority.
As co-founder Pankaj Sharma explained,
“About two and a half years back, we started with LTO as a chemistry, and at this point, the China-made LFP batteries were about 2X cheaper than ours... Today, Chinese LFP performance has improved substantially. They are also available at about $45 per kWh compared to $130 per kWh, whereas Log9 is buying LTO cells at $350 per kWh, creating more than a 4X gap.”
Ultimately, Log9’s high-priced batteries failed to appeal to fleet operators focused on upfront costs and range, especially as Chinese LFP batteries became both cheaper and more reliable.
Even the attempts to pivot into in-house LFP battery production in 2024 stalled due to a lack of funds.
Meanwhile, the company’s EV leasing business temporarily boosted revenue but masked deeper tech and operational problems. Mounting debt (₹200 crore), growing losses (₹118.6 crore in FY24), and delayed customer payments pushed Log9 into a debt spiral and forced layoffs of nearly 180 employees, leaving only about 40 staff.
Furthermore, Log9’s troubles were compounded by legal disputes with major clients like BluWheelz, who accused Log9 of underperforming vehicles and inflated bills. The company also sold off its railway battery technology unit and lost key cofounder Kartik Hajela, further weakening its position.
Though less documented than Ola or BluSmart’s woes, Log9’s headlines suggest a broader issue in India’s EV sector: startups may be overpromising to attract investors, only to struggle with delivery.
Not All Doom and Gloom
Despite these controversies, India’s EV story isn’t all crashes and fraud. Some companies are steering clear of the chaos and making real progress.
Ather Energy, for instance, has built a loyal customer base with its reliable electric scooters and focus on quality. Its consistent growth and expanding charging infrastructure have earned it praise as a steady player.
Ultraviolette Automotive is another success story. It has carved a niche with its high-performance electric motorcycles like the F77, which have garnered international attention for their design and engineering.
The Chinese EV giant BYD is also rapidly gaining ground in India. With just two models in 2023, BYD achieved a staggering 1500% growth, securing a spot among India’s top five EV brands.
A Wake-Up Call
The Ola and BluSmart scandals aren’t isolated incidents—they reflect a deeper malaise plaguing India’s EV ecosystem. In the race to ride the electric wave, too many startups have chosen flash over fundamentals, fueling a cycle of safety oversights, fiscal missteps, and unmet promises.
Even Log9’s recent issues signal a broader problem: a culture of unchecked optimism that risks alienating investors and disillusioning the public.
Sure, there are a few outliers who are doing it right, building with integrity, focusing on quality, and scaling responsibly. But they are the exception, not the norm.
Government initiatives like the PLI scheme for advanced battery cells show intent, but intent without enforcement means little. Regulators need to act—not just incentivize. And startups must decide: are they building long-term solutions or chasing the next funding headline?
India's EV revolution isn’t doomed, but it does need a serious course correction.
So, can the sector grow up before it collapses under its own hype?
Edited by Harshajit Sarmah
