Ola Electric said that it has provided the requested information and clarifications in response to the show cause notice issued by the CCPA
The EV company said that out of the 10,644 complaints received from the CCPA, 99.1% of the complaints were resolved to the complete satisfaction of the customer
The CCPA served the company a show cause notice over allegations of consumer rights violations, misleading advertisements, and unfair trade practices
Ola Electric
said it has responded to a show cause notice issued by the Central Consumer Protection Authority (CCPA) over alleged violation of consumer rights.
In an exchange filing, Ola Electric said that it has provided the requested information and clarifications in response to the show cause notice today to CCPA.
The EV company, which has been under fire over rising customer complaints about its escooters, said it has a “robust mechanism” to address complaints raised with respect to its vehicles.
“… we wish to emphasise that out of 10,644 complaints that we received from the CCPA, 99.1% of the complaints were resolved to the complete satisfaction of the customer as per Ola Electric’s robust redressal mechanism,” it said in the filing.
On October 7, the Bhavish Aggarwal-led company informed the exchanges that the CCPA served it a show-cause notice over allegations of consumer rights violations, misleading advertisements, and unfair trade practices.
Notably, the company has been facing a rising number of consumer complaints for the last few months. Recently, Aggarwal was also involved in a social media spat with comedian Kunal Kamra over the company’s after-sales service.
To address the issue, Ola Electric recently said that it would launch “HyperService” to offer “one-day resolution” of service-related issues.
It has also roped in consulting service firm EY India for a “service transformation” in response to increasing after-sales service challenges and surge in customer complaints.
Meanwhile, the company is also facing intense competition from the likes of Bajaj Auto, IPO-bound Ather Energy, among others. Ola Electric’s monthly registrations slipped 11% month-on-month to 23,965 units in September, the lowest sales figures since October last year.
However, earlier this month, the company said that it has been seeing strong demand for its escooters amid the festive season. Citing Vahan data, it said that its escooter registrations stood at 15,672 in the first 14 days of October and its market share stood at 34%.
Recently, the Automotive Research Association of India (ARAI) asked Ola Electric to explain why it did not inform it about a price cut for its S1X 2kWh model before launching the ‘BOSS’ sale.
Amid all these, the company’s shares have been on a downward trend on the bourses. On Monday, shares of Ola Electric slumped as much as 6.8% to INR 81.01 during intraday trading on the BSE. The stock is now trading just 6.6% above its listing price.
