Ola Electric under regulatory crosshairs as customer complaints mount, may lose subsidies

Sources said the CCPA is scrutinizing the EV maker’s claims, and after examining each individual complaint, the regulator will be able to “determine the correctness of Ola Electric’s responses.”

In addition, reports suggest that another electric vehicle manufacturer may receive a notice from the CCPA regarding consumer complaints. The National Consumer Helpline (NCH) is also set to handle complaints related to electric vehicles. Shares of Ola Electric were trading around Rs 78 per share on Monday, down nearly 50% from a peak of Rs 157.40.

The CCPA sent the company notice earlier this month after NCH received more than 10,000 complaints last year about poor after-sales support. If the company’s claims don’t meet the regulator’s standards, it could face legal action and potentially lose the subsidies its electric vehicles are eligible for under the PM Electric DRIVE Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) initiative.

Meanwhile, complaints against Ola Electric continue to rise on social media.

“@OlaElectric @bhash please reply to my email. I am sending a reminder but no response regarding the warranty on the replacement battery. Content below. I want a minimum 10 year warranty on the batteries as they are one of the expensive components of the scooter. You can provide the same if you trust your product,” a frustrated user shared on Monday.

Another user wrote: “Scooter Forcefully delivered and look at the work your team has done and it took you 30 days. @jagograhakjago no one doubts this company. Very disappointing, 99 percent force delivered and closed the complaint.”

Another user told about the case when his Ola Electric electric scooter broke down at night.

“Dear @OlaElectric @ola_supports, S1 pro completely discharged even with 27 percent charge in the middle of the night, no power button working, no restart working, we are stuck in the middle of the night,” they wrote on the site. X. IANS