Ola Electric executives meet MHI, seeks time to resolve service complaints

A delegation from Ola Electric met officials from the Ministry of Heavy Industries (MHI) on Thursday to seek clarification regarding a notice recently issued by the ministry to its testing agency Automotive Research Association of India (ARAI) regarding launching an investigation into consumer complaints against Ola.

A senior official familiar with the meeting said that Ola has committed to fully cooperate with the investigation and requested for time to resolve the matter. The company wants to get clarity on the deadline by which it has to comply with the requirements of the ministry.

In its notice to ARAI on Wednesday, the MHI requested for the testing agency’s perspective on the rising number of consumer complaints against Ola Electric. However, there is no clarity on the deadline for a reply to the notice.

“We have asked ARAI to investigate the matter, and a timeline will be provided by the testing agency. ARAI will examine whether any of the (electric) scheme’s guidelines have been violated,” the official said.

This action comes after the Central Consumer Protection Authority (CCPA) issued a show-cause notice to the electric vehicle manufacturer on October 3, 2024. The CCPA’s show-cause notice is based on 9,948 complaints received between September 2023 and August 2024, predominantly focused on delayed deliveries, defective products, and misleading advertisements.

Ola Electric has said that the show-cause notice from the CCPA “would not impact” its activities and that the company will file a response to the notice within the 15-day deadline.

ARAI approves Ola’s eligibility for government subsidies, asking them to verify if the company is upholding warranty obligations and maintaining service centres as required.

Ola Electric is a major beneficiary of several government incentive schemes, including the Faster Adoption & Manufacturing of Electric Vehicles II (FAME-II), Electric Mobility Promotion Scheme (EMPS), PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE), and the Production Linked Incentives (PLI) schemes for Automobile and Auto components and Advanced Chemistry Cells.

Under FAME, EMPS and PM E-Drive schemes, manufacturers of electric two-wheelers receiving subsidies are required to offer consumers a warranty of three years or 20,000 km, whichever comes first, and ensure adequate facilities for after-sales service throughout the vehicle's lifespan.

If found in violation of any government guidelines, the company could lose its eligibility to receive further incentives.

Additionally, the CCPA is planning to pursue class action against Ola Electric, following thousands of unresolved complaints lodged with the National Consumer Helpline (NCH).

Ola Electric now has 15 days to respond, with the notice warning of violations under the Consumer Protection Act, 2019, including unfair trade practices and deficiencies in service.

Meanwhile, Ola Electric on Thursday announced its “BOSS 72-hour Rush” event from October 10 to 12, as part of its Biggest Ola Season Sale for the festive season. During this period, customers can purchase the Ola S1 scooter for as low as Rs 49,999, with additional benefits worth up to Rs 25,000 on the S1 portfolio. The S1 X 2kWh is being offered at Rs 49,999 (limited stock daily), while the flagship S1 Pro includes discounts of up to Rs 25,000 and a flat Rs 5,000 exchange bonus.

Ola Electric’s share price closed down by 5.21 per cent on Thursday, settling at Rs 90.79 per share.