CHENNAI: The Department of Consumer Affairs is reviewing Ola Electric’s claim of resolving 99% of over 10,000 complaints regarding its e-scooters, following a show-cause notice issued by the Central Consumer Protection Authority (CCPA) earlier this month.
As per sources, the department is investigating the company’s assertion and plans to reach out to customers to verify their experiences.
Earlier, Ola Electric said it has a strong system for addressing customer complaints. “Of the 10,644 complaints received via the CCPA, 99.1% were resolved to the complete satisfaction of the customer, as per Ola Electric’s robust redressal mechanism,” the company claimed in a statement to the exchanges.
The CCPA issued its show-cause notice to Ola Electric on October 7, accusing the company of violating consumer rights, misleading advertising, and unfair trade practices. It had informed that over 10,000 consumer complaints were logged with the National Consumer Helpline, most of which were related to the company’s after-sales service.
Shortly after, the Ministry of Heavy Industries (MHI) involved the Automotive Research Association of India (ARAI) to verify if Ola Electric is meeting its warranty commitments and maintaining adequate service centers.
The Ministry of Transport has also sought an explanation from Ola Electric regarding the quality concerns raised by customers about its e-scooters.
Last week, the CCPA, under Chief Commissioner Nidhi Khare, expressed concerns about Ola Electric’s refund policy, which currently offers future ride coupons instead of cash refunds. The CCPA has instructed Ola to make its refund process more consumer-friendly.
Mkt share, stock prices fall in last two months
Ola Electric’s after-sales service has faced ongoing criticism on social media, which has affected its market share and stock prices. The company’s shares have dropped from Rs 157.4 to Rs 77 in past two months. Brokerage HSBC recently revised its target price for Ola Electric, lowering it from Rs 140 to Rs 110. HSBC noted the company is undergoing several initiatives to improve service quality.