 "Ola Electric")
Shares of recently listed Ola Electric Mobility fell by 6.17 per cent in intraday deals to Rs 85.21 on Tuesday after the Central Consumer Protection Authority (CCPA) served a show cause notice to the company on Monday.
At 10:44 AM, the stock price of the company recovered some of its losses and was trading down 1.78 per cent at Rs 89.20 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.55 per cent to 81,494.11 level.
Ola in an exchange filing disclosed that the CCPA has provided a timeline of 15 days to the Company to respond to the show cause notice. The company said that it will respond to the notice within the given timeframe with the supporting documents.
The show cause notice has been issued by CCPA for alleged violation of consumer rights, misleading advertisement and unfair trade practices.
“The company will file a reply to the show cause notice before the CCPA. Currently, the Show Cause Notice has no impact on financial, operational or other activities of the company. Furthermore, the notice does not impose any penalties or financial fines,” the company’s management said in an exchange filing.
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Ola Electric is a dedicated electric vehicle (EV) player in India, focused on developing vertically integrated technology and manufacturing capabilities for EVs and their components, including battery cells. It produces EVs and essential components such as battery packs, motors, and vehicle frames at the Ola Future Factory
In September, the Indian electric two-wheeler manufacturer reported the lowest monthly sales this year as its dominance declined with emerging competition from smaller players and servicing network challenges.
Ola Electric sold 23,965 vehicles in September 2024, recording a month-on-month (M-o-M) decline for the second consecutive month. Its falling M-o-M sales has seen its market share decline for five straight months to 27 per cent in September, from over 50 per cent in April, data showed.
During this period, TVS Motor and Bajaj Auto narrowed their sales gap reporting market share gains for five and three straight months, respectively.
Slowing sales at Ola, whose prices have often undercut the market, pose further challenges to the company's financial results. It is yet to turn a profit.
The concern has now spread across Twitter, rebranded as X, where stand up comedian Kunal Kamra has questioned Ola's service by tweeting a tweet from Bhavish Aggarwal, CEO of Ola, which had a picture of the Ola Gigafactory.
Kamra said in the tweet, "Do Indian consumers have a voice? Do they deserve this? Two-wheelers are many daily wage workers' lifeline…@nitin_gadkari is this how Indians will get to using EVs? @jagograhakjago any word? Anyone who has an issue with OLA electric leave your story below tagging all. What followed was a long war of words between the Ola CEO, Bhavish Aggarwal and comedian Kunal Kamra.
Do indian consumers have a voice?
— Kunal Kamra (@kunalkamra88) October 6, 2024
Do they deserve this?
Two wheelers are many daily wage workers lifeline…@nitin_gadkari is this how Indians will get to using EV’s? @jagograhakjago any word?
Anyone who has an issue with OLA electric leave your story below tagging all… https://t.co/G2zdIs15wh pic.twitter.com/EhJmAzhCmt
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