Ola Electric is facing huge consumer outrage with more than 10,000 complaints
The Automotive Research Association of India (ARAI) has launched an inquiry into Ola Electric’s warranty claims and service centre operations following a surge of over 10,000 complaints from dissatisfied customers.
Reportedly, the probe will examine whether Ola Electric has been adhering to its commitments related to warranty claims, vehicle maintenance and service support, as part of its registration under the government-backed Faster Adoption and Manufacturing of Electric Vehicles (FAME) and Production-Linked Incentive (PLI) schemes.
ARAI’s Focus on Compliance
ARAI’s investigation also extends to whether Ola Electric has violated FAME and PLI guidelines by offering vehicles at prices below the ex-factory rate through discount schemes. The schemes under these programs are designed to promote electric vehicle adoption while ensuring fair market practices.
Ola Electric has responded to the probe, stating that it has not sold vehicles below the ex-factory price. The company clarified that its current festive campaign includes a Rs. 5000/- discount for all customers and a higher discount of Rs. 25,000/- for a limited inventory of the Ola S1 X 2KWh model. Ola further indicated that it had provided ARAI with the requested invoices to substantiate its claim, following a request for clarification on 8th October.
Central Consumer Protection Authority’s Show-Cause Notice
In a parallel development, the Central Consumer Protection Authority (CCPA) has issued a show-cause notice to Ola Electric, citing unresolved complaints related to quality and after-sales service. Over 10,000 grievances have been lodged against the company, many of which have remained unaddressed, according to the National Consumer Helpline (NCH).
Key concerns raised by consumers include issues with charging during the warranty period, delays in warranty claims, unsatisfactory service and recurring defects even after servicing. Complaints have also surfaced regarding inconsistent performance compared to advertised claims, overcharging and disputes over invoice accuracy. In some cases, consumers reported being denied refunds or experiencing unprofessional conduct during their interactions with the company.
The CCPA’s notice, issued on 7th October, highlighted potential violations of consumer rights, including misleading claims, deficiencies in service and unfair trade practices. Ola Electric acknowledged receiving the notice and has been given 15 days to respond with supporting documentation.
Ola Electric’s Response and Market Expansion
Ola Electric, a key player in India’s electric scooter market, has stated that it is actively addressing the situation and will respond to the CCPA within the allotted timeframe. The company, which offers three models of electric scooters, has recently announced its entry into the electric motorcycle segment, further expanding its product portfolio.
The company has also been at the centre of public discussions, including a social media dispute between Ola’s founder, Bhavish Aggarwal and comedian Kunal Kamra, who publicly criticised Ola Electric’s after-sales service issues. This dispute added to the mounting scrutiny over the company’s customer service practices.
As both ARAI and the CCPA pursue their respective investigations, the outcome could have significant implications for Ola Electric’s reputation and its position in India’s growing electric vehicle market.
