CCPA investigates 99% of Ola Electric’s grievance redressal claims out of over 10,000 complaints

According to sources cited by CNBC TV18, the Ministry of Consumer Affairs is currently conducting a thorough analysis of Ola Electric’s response to the Central Consumer Protection Authority (CCPA) notice.

The notice was issued after more than 10,000 consumer complaints registered on the National Consumer Helpline, most of which related to Ola’s after-sales service issues. Ola Electric claims to have resolved 99% of these complaints; however, that number is now under scrutiny as the CCPA seeks to cross-check consumer responses with company records to verify the accuracy of the resolution frequency.

According to sources, the CCPA is also investigating complaints directed at another electric vehicle (EV) manufacturer, which could lead to a similar show cause notice if repeated problems are found.

This review of the electric vehicle sector is part of wider market surveillance by the Department for Consumer Affairs, which tracks consumer complaints across sectors at an early stage of investigation to identify patterns of customer dissatisfaction.

In addition to electric vehicles, the department is actively monitoring complaints in ten key sectors that have shown high levels of complaints to determine whether common problems are unique to individual companies or reflect broader systemic problems in the market.

The electric vehicle sector, in particular, has seen an increase in complaints from users, resulting in several companies coming under scrutiny from the department as part of its efforts to enforce consumer protection standards across all industries.

Ola Electric, which has come under heavy criticism for its customer service practices, received a show cause notice from the CCPA after accumulating thousands of unresolved complaints through the National Consumer Helpline over the past year.

The company has publicly stated its intention to address these issues and claims that most of the complaints have been resolved. However, its market share in the EV sector has been steadily declining, falling from 52% in April to 27% by September, as traditional automakers such as Bajaj Auto and TVS Motor have increased their presence in the EV market.

Shares of Ola Electric mirrored the trend, initially rising to Rs 157.4 per share after its August listing but later falling to Rs 77.29. In addition, the Automotive Research Association of India (ARAI) is evaluating Ola’s compliance with service and warranty obligations under the government’s electric vehicle subsidy schemes and whether it is following guidelines to ban sales of vehicles below the factory price.