Heavy Industries Ministry has sent letter to ARAI seeking more clarification into the complaints of Ola Electric scooters
Ola Electric Mobility Ltd. is facing growing regulatory scrutiny as the Central Consumer Protection Authority (CCPA) has issued a show-cause notice in response to widespread consumer complaints. The notice comes amid allegations of service deficiencies, misleading advertisements, and unfair trade practices, pushing the company to respond within 15 days with supporting documentation.
Grievances Unveiled
A leaked document reveals the scale and nature of the consumer complaints that have been lodged against Ola Electric. Some of the key issues include:
– Charging during free service period/warranty – 109 complaints
– Charging extra than promised – 91 complaints
– Customer requests not entertained by dealer/service centers – 117 complaints
– Improper customer/helpline services – 67 complaints
– Delays in new vehicle delivery – 1,899 complaints
– Delays in service/repair – 3,364 complaints
– Delays in providing vehicle documents – 244 complaints
– Fake insurance/documents provided by dealers – 21 complaints
– Mileage not as per commitment – 28 complaints
– Misbehaviour by dealer/company – 52 complaints
– Misleading advertisements – 34 complaints
– Non/partial refunds on booking cancellations – 270 complaints
– Unfulfilled promised gifts – 111 complaints
– Promised services not provided – 1,459 complaints
– Same problem persisting after repairs – 471 complaints
– Sale of second-hand/test-drive vehicles as new – 34 complaints
– Unsatisfactory redressal of complaints – 672 complaints
– Manufacturing defects in vehicles – 761 complaints
– False promises and misleading information about vehicles – 144 complaints
In addition to these, there are over 10,000 complaints registered in total.
Mounting Pressure and Market Share Worries
Analysts have pointed out that Ola Electric’s market share is under increasing pressure as competition in the electric two-wheeler segment intensifies. The company’s reputation has been shaken by these complaints, which could lead to further challenges in maintaining market leadership. According to insiders, this wave of negative publicity could affect consumer confidence in the brand, making it crucial for the company to resolve the issues swiftly.
Ministry of Heavy Industries Investigates Service Complaints
In a parallel development, the Union Ministry of Heavy Industries has launched an investigation into the service-related issues raised by Ola Electric customers. The ministry has sent a letter to the Automotive Research Association of India (ARAI), seeking clarification and inputs regarding the complaints filed.
The ministry also emphasized that, as per the FAME-II and PM E-Drive schemes, all original equipment manufacturers (OEMs), including Ola Electric, are required to maintain service centers and provide warranties. Ola Electric, being a beneficiary of these schemes, has been asked to provide detailed comments and address the grievances at the earliest.
Analyst Insights: Tough Times Ahead for Ola Electric
With the combined pressure from the CCPA and the Ministry of Heavy Industries, industry analysts predict challenging times ahead for Ola Electric. The company’s ability to manage the situation and provide satisfactory responses will be crucial in determining its future market position. Ola Electric is trading at Rs 91 on the NSE, down 5%.
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