India, April 30 -- Credit rating agency ICRA has downgraded the rating of Ola Electric's subsidiary Ola Electric Technologies Pvt Ltd rating due to underperformance in the company's sales volume and revenue anticipations.

The rating agency said it considered a consolidated view of Ola Electric and its subsidiary for the rating downgrade. It said that the "material underperformance" in the company's sales volumes and revenues relative to earlier expectations have extended the timeline for profitability and impacted near-term financial flexibility.

"While ICRA recognises the recent improvements made by the company in improving unit economics and controlling costs, its interplay with volume growth and market share recovery will be a crucia...