New Delhi, May 3 -- Credit rating agency Icra Ltd has downgraded the debt of Ola Electric Technologies Ltd-a key subsidiary of listed Ola Electric Mobility Ltd-after the company's electric scooter sales dropped sharply in April, raising concerns about continued cash burn and delayed profitability.

The downgrade comes as India's largest electric two-wheeler maker struggles to defend market share amid rising competition, operational hiccups, and regulatory scrutiny. Icra flagged the company's slower-than-expected scale-up, elongated cash burn period, and the likelihood of additional fund-raising over the next 12-24 months.

Read this | Ola Electric's sales collapse in a booming electric two-wheeler market

Ola Electric's vehicle registrati...