CCPA Deepens Probe Into Ola Electric

SUMMARY

CCPA has sought additional information from Ola Electric regarding its ongoing investigation around the company's after sales process

The consumer watchdog has been investigating Ola Electric over allegations of delays in providing service and deliveries, improper customer services, among a host of other customer complaints

Amid this, Ola Electric's shares have been on a bull run at the bourses of late

The Central Consumer Protection Authority (CCPA), which is investigating customer complaints against Ola Electric, has sought further information from the Bhavish Aggarwal-led company.

In an exchange filing, Ola Electric said that the consumer protection body has sought additional documents and information from the company.

In October this year, the CCPA issued Ola Electric a show-cause notice over allegations of delays in providing service and deliveries, improper customer services, misbehaviour, defective vehicle sales, and a host of other customer complaints.

The agency had given the company a timeline of 15 days to submit its response which Ola Electric said that it will adhere to.

Responding to the notice, Ola Electric claimed on October 21 that it had resolved 99.1% of the complaints it had received. However, it was reported last month that the Authority found that 80% of the claimed resolutions were not implemented at all.

It is pertinent to mention that grievances from social media users about the performance of Ola Electric scooters have continued to pile up for a large part of this year. The company’s customers took to social media platform X to complain about unresolved software and hardware issues, improper service and difficulties with the company’s employees.

To address this issue, Ola Electric said earlier this year that it would offer a one-day service guarantee and provide a backup scooter if the issues are not resolved in a day.

As part of this plan, the company said earlier this week that it plans to quadruple its company-owned store network to 4,000 by December 20.

“With over 3,200 new stores set to open, Ola Electric will operate India’s largest EV distribution network, covering all the country’s pin code,” it said.

Last month, Ola Electric announced the launch of its new Gig and S1 Z range of scooters, focussed on the gig economy. It also launched a portable battery pack, named Ola PowerPod.

Amid all these, Ola Electric’s shares have been on a bull run at the bourses of late. After touching new lows in November, the stock has seen a revival in the last couple of weeks.

Shares of Ola Electric ended today’s trading session 0.11% higher at INR 98.50 on the BSE.