Bengaluru-based electric vehicle manufacturer Ola Electric’s troubles don’t seem to end. Following the recent days when the company has faced criticism for its after-sales services, the Central Consumer Protection Authority (CCPA) has now issued a show-cause notice to the company, citing a surge in customer complaints and concerns over service centre inefficiencies.The Bhavish Aggarwal-led electric vehicle company has been given 15 days to respond.
The notice, issued under the Consumer Protection Act, 2019, follows reports of thousands of grievances lodged by Ola Electric customers. Complaints range from manufacturing defects, unprocessed refunds for booking cancellations, repeated issues despite servicing, and overcharging to billing inaccuracies. Numerous customers have also reported problems with the battery and vehicle components of Ola’s flagship electric scooters.
Data from the National Consumer Helpline reveals 10,644 complaints were filed against the company between September 2023 and August 2024. Key issues include service delays, delivery setbacks, and failure to meet promised service standards.
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Ola Electric: Mounting troubles
Ola Electric saw a strong start in 2024, reaching a peak of 40,814 units sold in July. However, sales have steadily dropped, with 26,928 units in August and 23,965 in September, reducing the company’s market share to about 27 percent. In response to rising customer concerns about after-sales service, Ola has committed to expanding its service network to 1,000 outlets by the end of the year.
Meanwhile, the company’s stock dropped 9 percent on Monday, closing at Rs 90.26 per share, as its market share continues to shrink. Currently, Ola’s EV market share stands at 27 percent, and its stock has plummeted by 42-43 percent from its peak, partly due to escalating competition and poor service infrastructure.
Amid all of this, company CEO Bhavish Aggarwal also had an argument with comedian Kunal Kamra on social media platform X.
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