EV Fires: Government Sends Show Cause Notice To Ola Electric, Okinawa, Others

The government has reportedly sent show cause notices to Ola Electric, Okinawa Autotech, Pure EV, and other original equipment manufacturers (OEMs) asking them to detail the reasons for the recent fire incidents with their two-wheeler electric vehicles (EVs).

The Centre has asked the players to explain why they should not be penalised for the recent escooter fires, which most likely were caused due to faulty batteries.

They have been given 30 days till July-end to respond to the notices, an official aware of the matter told Mint. The government might also extend the time period as the players are expected to provide a detailed response.

Earlier, CNBC-TV18 had reported that the Central Consumer Protection Authority (CCPA), under the Union Consumer Affairs Ministry, had sent notices to the escooter manufacturers in question. The CCPA had sent a notice to Ola Electric in mid-June and asked it to respond within 15 days. 

Notices were reportedly sent to OEMs such as Pure EV and Boom Motors in May.

The government had formed two committees to investigate the fire incidents. One of the committees found that the vehicles involved in such incidents lacked ‘basic safety systems’.

As per reports last week, the experts’ committee identified that the battery management systems (BMS) of the electric two-wheelers were seriously deficient and there was no ‘venting mechanism’ for overheated cells to release energy. Following the investigation, the safety recommendations were sent to the OEMs.

“The companies have been advised to set them in order quickly. We have also asked them to explain why action should not be taken against them for these failures,” the official familiar with the matter told Mint.

Following the spike in EV fire incidents in the last few months, the government had taken several measures. The Bureau of Indian Standards (BIS) recently published the ‘performance standards for electronic vehicle batteries’. The standardising agency is also in the process of specifying two different standards for batteries of various passenger and commercial vehicles.

Following the fire incidents, government think tank NITI Aayog had asked the OEMs in question to voluntary recall their escooters involved in such incidents as a precautionary measure. Over 7,000 escooters were recalled after that.

The demand for two-wheeler EVs has also been affected due to safety concerns. Besides, impending policy changes and disruptions in the global supply chain have also hit the demand.

After a month-on-month (MoM) decline in two-wheeler EV registrations in April and May, electric two-wheeler registrations saw a rise in June. However, many of the companies whose vehicles were involved in the fire incidents continue to see a fall in registrations. 

After a 27.3% MoM decline in May, Ola Electric’s vehicle registrations declined 36.5% MoM in June to 5,874 units. The electric mobility startup also lost its second position in terms of the number of registrations to Ampere Vehicles in June.

While Okinawa Autotech maintained its top position, its registrations declined 25% MoM to 6,980 units in June.

The gradual decline in vehicle registrations is also visible for Pure EV and Jitendra EV.