[Update] Ola Electric Shares Tumble 3% Amid Regulatory Scrutiny Over ‘BOSS’ Sale

Update | October 15, 6:42 PM

Ola Electric on Tuesday (October 15) clarified that the company’s share drop on Monday (October 14) didn’t have any relation with the ARAI scrutiny over its recent pricing strategy.

“We would like to submit that we are not aware of any information that has not been announced to the exchanges which could explain the movement in the trading of equity shares of the Company,” Ola Electric said in an exchange filing.

As per the company, ARAI sent an email on October 8, to seek clarification on the pricing strategy of the S1 X 2KWh model, which was being sold at INR 49,999.

However, the company said that they didn’t change the price of Ola S1 X 2KW, adding that an INR 5,000 general discount was offered to every customer and a higher discount of INR 25,000 was given to a few select customers with limited inventories.  

Original Story | October 14, 3:40 PM

Shares of Ola Electric dropped as much as 3% to INR 87.34 during intraday trading on the BSE today (October 14) amid regulatory scrutiny from the Automotive Research Association of India (ARAI) over its recent pricing strategies.

According to a Business Standard report, ARAI has asked Ola Electric to explain why it did not inform the authority about a price cut for its S1X 2kWh model before launching the ‘BOSS’ sale. 

If ARAI finds violations of regulatory guidelines, Ola could face legal action and risk losing subsidies under the PM Electric DRIVE Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.

Additionally, the Ministry of Heavy Industries (MHI) recently requested that ARAI confirm whether Ola Electric is fulfilling warranty obligations and maintaining required service centers.

The company, led by Bhavish Aggarwal, has faced growing criticism over customer complaints related to after sales service. 

Last week, Aggarwal clashed on social media with comedian Kunal Kamra, who highlighted these complaints, leading to a public argument.

Separately, the Central Consumer Protection Authority (CCPA) issued a show cause notice to Ola Electric over alleged consumer rights violations, misleading advertising, and unfair trade practices. 

After which it directed the company to make consumer-friendly adjustments, such as offering refunds and providing receipts for auto rides.

Ola Electric’s stock fell 6% on October 10. Since reaching a post-listing high of INR 157 in August, the stock has dropped nearly 44%. 

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