Ola Electric Mobility's shares rose nearly 4% after the electric vehicle maker launched its first dealer-led stores across seven Indian states, marking a significant shift in its retail strategy.

The rollout comes about a month after the company opened its sales and service network to third-party partners. Ola Electric plans to expand to more than 500 dealerships over the next couple of quarters as it works to strengthen its retail presence across the country.

The dealer-led model represents a departure from Ola Electric's earlier direct-to-consumer approach, under which the company sold its electric scooters primarily through its website and its own company-operated experience centres. By bringing in dealer partners, the company aims to broaden its physical footprint and improve access to sales and after-sales service in more markets.

Ola Electric, founded by Bhavish Aggarwal, is one of India's largest electric two-wheeler manufacturers and competes in the segment with established players such as Bajaj Auto, TVS Motor Company, and Hero MotoCorp — rivals that have long relied on extensive dealer networks across India, a distribution model the shift now brings Ola closer to. The company is listed on Indian stock exchanges and sells electric scooters under the Ola brand.

The retail overhaul also comes at a time when India's electric two-wheeler segment is seeing rising competition and government support measures, including subsidies under schemes such as the FAME II programme, which have helped drive electric two-wheeler adoption in the country.

Source: Economic Times Markets