Ola Electric Faces Consumer Backlash As Shares Plummet

Ola Electric, led by CEO Bhavish Aggarwal, is under increasing pressure as consumer complaints flood social media, prompting a show-cause notice from the government. The company’s shares recently dipped to a low of Rs 86, marking a staggering 43-35% drop from their all-time high of Rs 157.40 just days earlier.

In a filing with the stock exchange, Ola Electric confirmed receipt of the notice from the Central Consumer Protection Authority (CCPA), which has given the company 15 days to respond. The notice cites potential violations of the Consumer Protection Act, 2019, related to numerous customer grievances.

The CCPA’s concerns stem from reports of manufacturing defects, inadequate refunds for booking cancellations, recurring issues despite servicing, overcharging, and problems with batteries and vehicle components. Since September of last year, the National Consumer Helpline has recorded over 10,600 complaints specifically regarding Ola Electric.

Also Read: Indian Equity Indices Rise On Strong Performances By UltraTech Cement, NTPC, & L&T

Nidhi Khare, Secretary of the Department of Consumer Affairs, stated, “The CCPA is investigating a significant number of complaints about Ola Electric, primarily related to service inefficiencies. We hope the company addresses these concerns promptly.”

As customer dissatisfaction continues to grow, many have taken to social media to express their frustrations. One user share their experience: “I deliver my scooter to Ola three weeks ago, and although they return it last Saturday, it’s still not fixed. I regret my decision to buy this scooter in 2022.”

Another user comment on the engineering quality of the scooters, stating, “Ola scooters are poorly engineer. The updated platform has made repairs nearly impossible, forcing users to seek replacements for even minor issues. How is any of this GREEN?”

As the company navigates these challenges, the future of Ola Electric remains uncertain amidst mounting consumer discontent.