Ola Electric has eliminated its regional warehouses across India, and will now leverage its 4,000 retail stores nationwide for maintaining vehicle inventory, spare parts, accessories and last-mile deliveries.

The strategic move is expected to boost EBITDA margins by almost 10 percentage points, besides improving inventory management and faster customer deliveries, sources directly familiar with the matter said.

Ola Electric is redesigning its distribution network and optimizing vehicle registration process as India’s largest electric two-wheeler maker chalks out roughly Rs 30 crore monthly savings in an accelerated profitability drive.

The company has also renegotiated contracts with vehicle registration agency partners to streamline the process and further reduce costs.

While this move temporarily affected the company’s registration numbers on the VAHAN portal in February, Ola Electric clarified in a stock exchange filing that actual sales remained unaffected during the month.

Sources indicated that the company is on track to sell over 25,000 units this month, maintaining its leadership in the EV two-wheeler segment.

“The front-end network redesign represents a fundamental rethinking of how we manage inventory and serve customers,” shared a senior company executive requesting anonymity. “Our initial distribution model served its purpose during our early growth phase, and now the company’s rapid expansion necessitated the front-end redesign.”

The restructured network allows Ola to maintain inventory directly at retail locations, eliminating an entire distribution layer while enabling stores to function as delivery points, reducing last-mile expenses and improving customer experience.