Ola Electric receives a show cause warning from the consumer protection authorities due to an increase in customer complaints.

Summary: After receiving 9,948 complaints from customers, mostly regarding misrepresented advertisements, defective scooters, and delayed delivery, the CCPA sent Ola Electric a show cause letter.

Ola Electric, the largest manufacturer of electric two-wheelers, is issued a show cause notice by the Central Consumer Protection Authority (CCPA) in response to 9,948 consumer complaints submitted through the National Consumer Helpline between September 1, 2023, and August 30, 2024. 

As per the Consumer Protection Act of 2019, the complaints indicate a consistent pattern of noncompliance, such as deficient services, deceptive advertising, and unfair commercial practices.

In response to the stock exchanges, Ola Electric confirmed that it had received the show cause warning and reiterated its commitment to resolving customer complaints. 

The corporation pledged to submit a complete response and supporting documentation to the CCPA within the time frame specified. They stated that the show cause notice will not affect their financial or operational activities.

Indeed, Ola Electric has reconfigured its service staff to accelerate an internal service reform. To reduce the amount of work at its service centers, it provides other service touchpoints, such as certified service partners.

Ola Electric's share price began more than 5% down on Tuesday after the business received a show cause notice from the federal government on Monday in response to thousands of consumer complaints about the poor quality of scooters. The stock bounced back, closing the day at Rs 90.95 per share, up 0.37%.

Recently, Ola Electric founder Bhavish Aggarwal and comedian Kunal Kamra got into an argument after Kamra shared pictures of abandoned Ola scooters outside the company's dealership, raising worries about safety.

Due to concerns about overheating and battery fires, which are becoming more common in India's EV sector, Ola's scooters have come under scrutiny.

Kunal Kamra posted a picture of abandoned OLA scooters outside a dealership with the caption, “Do Indian consumers have a voice? Two-wheelers are the lifeline for many daily wage workers.”

To which CEO Bhavesh Aggarwal replied, “"Since you care so much, @kunalkamra88, come and help us out!”

“I’ll even pay more than you earned for this paid tweet or from your failed comedy career. Or else sit quiet and let us focus on fixing the issues for the real customers.”

This started a row of arguments on the X platform. Kamra’s fans and fellow comedians defended the comedian, saying, “Kamra didn’t take your customers money and deliver substandard service. You did that. Take some accountability for it instead of shamelessly fighting with celebrities on Twitter.”

While other users wrote, “Such a display of arrogance is remarkable,” “ It would be more beneficial if he dedicated this time to enhancing his service and resolving customer complaints.”

Last month, a furious customer reportedly tried to set fire to an Ola showroom after his recently bought EV scooter malfunctioned.