Ola Electric has announced that it has resolved 99.1% of the 10,644 complaints it received from the Central Consumer Protection Authority (CCPA), following a show-cause notice issued to the company for alleged consumer rights violations. The company claims that its “robust redressal mechanism” ensures customer satisfaction in the majority of cases.
In an exchange filing, Ola Electric stated, “We wish to emphasise that out of 10,644 complaints that we received from the CCPA, 99.1% of the complaints were resolved to the complete satisfaction of the customer as per Ola Electric’s robust redressal mechanism.” The electric vehicle (EV) maker further confirmed that it had responded to the CCPA’s show-cause notice, providing the requested information and clarifications.
The Bhavish Aggarwal-led company has been under scrutiny due to a rise in customer complaints about its electric scooters. On October 7, Ola Electric disclosed that the CCPA had served the notice over allegations of misleading advertisements, unfair trade practices, and consumer rights violations.
Amid these challenges, the company is taking steps to address service-related issues. Ola Electric recently announced the launch of “HyperService,” aimed at resolving service complaints within one day. The company also enlisted consulting firm EY India to assist in a “service transformation” initiative to improve its after-sales service amid rising consumer dissatisfaction.
Ola Electric has faced stiff competition from companies like Bajaj Auto and Ather Energy, the latter of which is preparing for an IPO. The company’s sales figures have been declining, with monthly registrations dropping 11% month-on-month to 23,965 units in September, marking the lowest since October 2023.
In response to this, Ola Electric recently reported strong demand for its electric scooters during the ongoing festive season. Citing Vahan data, the company said, “Its escooter registrations stood at 15,672 in the first 14 days of October and its market share stood at 34%.”
However, Ola Electric also faces regulatory scrutiny. The Automotive Research Association of India (ARAI) recently asked the company to explain why it did not inform the agency about a price cut for its S1X 2kWh model before launching the “BOSS” sale.
On the financial front, Ola Electric’s shares have been on a downward trend. On Monday, its stock slumped as much as 6.8% to INR 81.01 during intraday trading on the BSE, with the stock currently trading just 6.6% above its listing price.