Ola Electric to face CCPA probe over poor service, product standards

1 month ago | 5 Views

Ola Electric continues to be under the scanner over its alleged poor after-sales service and other issues flagged by unsatisfied EV customers over the past several months. Consumer watchdog Central Consumer Protection Authority (CCPA) has now decided to conduct an investigation into the service standard and product-related issues at Ola Electric. The decision comes weeks after it had sent a show-cause notice to the EV maker, India's largest manufacturer in the electric two-wheeler segment, over alleged violation of consumer rights, misleading advertisement and unfair trade practices.

According to a report on Reuters, Nidhi Khare, Secretary of Consumers Affairs, has confirmed that the CCPA has asked the Bureau of Indian Standards (BIS) to conduct a detailed investigation into the allegations of poor service and product. When contacted, Ola Electric did not respond to the development.

Ola claims 99% of complaints resolved

Last month, Ola Electric had claimed that it has resolved more than 99 per cent of the 10,644 customer complaints which led to CCPA issuing a show-cause notice against it. The EV maker had said that the complaints were resolved successfully within the timeframe set by the CCPA. It had also said most of the complaints raised by customers were minor. Bhavish Aggarwal, CEO and founder at Ola Electric, had said, “Two-thirds of it actually are just minor issues like loose parts or customers unfamiliar with the software used."

Ola Electric is currently the leading electric two--wheeler manufacturer in India with a market share hovering around 30 per cent. The EV maker sells three versions of its electric scooters which include the S1 X, S1 Air and S1 Pro. All these models have been offered at discounted rates this season in an effort to boost sales and market share. Ola Electric had launched its maiden IPO in August this year. However, it has been witnessing steady decline in its share prices as well as market share amid the ongoing controversy.

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