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Ola Electric faces govt probe amid complaints over service standards

In an earnings call earlier, Ola founder Bhavish Aggarwal had said the customer complaints were mostly related to “minor issues”

Updated on: Nov 15, 2024, 04:52:12 IST
By , New Delhi
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The Bureau of Indian Standards (BIS) will probe Ola Electric, the country’s largest maker of e-scooters, for deficient services and product quality, an official said on Thursday.

A man checks his mobile phone as he waits while recharging his Ola electric scooter at an electric vehicle charging station in New Delhi. (REUTERS)
A man checks his mobile phone as he waits while recharging his Ola electric scooter at an electric vehicle charging station in New Delhi. (REUTERS)

The national certification agency, an arm of the Union consumer affairs ministry, has been asked by the statutory Central Consumer Protection Authority (CCPA) to investigate whether the EV maker had resolved a wave of complaints and if standards related to customer services and products were being followed.

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The move comes after CCPA’s notice to Ola Electric last month, seeking a response from the SoftBank-backed company over more than 10,000 complaints from customers on the National Consumer Helpline. Ola Electric did not immediately respond to a query requesting a comment.

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Angry customers recently took to social media to complain about poor services, delays and repair issues related to Ola Electric’s e-scooters. In October, the EV maker was in the news after a social-media spat between its founder and a standup comedian over deficient services.

According to the official cited above, BIS has been instructed to submit a report within 15 days into Ola Electric’s after-sales services. Ola, which has a 27% market share, disclosed to stock exchanges last month that it received a notice for “alleged violation of consumer rights” from CCPA.

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In an earnings call last week, Ola founder Bhavish Aggarwal had said the customer complaints were mostly related to “minor issues” and some had to do with a lack of full knowledge about the e-scooter’s technology.

Headquartered in Bangalore, Ola Electric operates the country’s largest integrated and automated manufacturing plant, with R&D facilities in India, UK and US, including a Battery Innovation Centre. In a recent regulatory filing, Ola Electric said it had resolved almost all complaints lodged with the CCPA.

  • Zia Haq
    ABOUT THE AUTHOR
    Zia Haq

    Zia Haq reports on public policy, economy and agriculture. Particularly interested in development economics and growth theories.

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