The notice pertains to alleged violation of consumer rights, misleading advertisement and unfair trade practices by Ola Electric
The Bhavish Aggarwal-led company said that the consumer watchdog has directed it to respond to the show cause notice within 15 days
This comes just a day after a verbal duel erupted between Ola Electric CEO Aggarwal and comedian Kunal Kamra over EV major’s after-sales service
A day after a public spat between Ola Electric
CEO Bhavish Aggarwal and comedian Kunal Kamra over the former’s after-sales services, the Central Consumer Protection Authority (CCPA) has issued a show cause notice to the electric vehicle (EV) major.
In an exchange filing, the company said that the consumer watchdog has directed it to respond to the show cause notice within 15 days. The notice, as per the company, pertains to alleged violation of consumer rights, misleading advertisement and unfair trade practices by Ola Electric.
“… We wish to inform you that the Company has received (a) show cause notice from the Central Consumer Protection Authority. The CCPA has provided a timeline of 15 days to the company to respond to the show cause notice. The Company will respond to the CCPA within the given timeframe with the supporting documents,” the filing said.
Ola Electric said that the notice will have no impact on financial, operational or other activities of the company.
This comes a day after a verbal duel erupted between Aggarwal and Kamra. It all started after Kamra posted a photo on X, showing Ola escooters parked outside a dealership and gathering dust.
“Do Indian consumers have a voice? Do they deserve this? Two wheelers are many daily wage workers’ lifeline …,” said Kamra. In retort, Aggarwal accused Kamra of taking money to criticise the company, adding that Ola Electric is expanding its network and would clear the backlogs soon.
The comedian responded by calling Aggarwal “arrogant, substandard”, while Ola Electric CEO retorted by offering to pay Kamra “better” than his “flop shows”.
Ola Electric has been facing a rising number of consumer complaints for the last few months. To address the issue, the company recently said that it would launch “HyperService” to offer “one-day resolution” of service-related issues.
Meanwhile, a day after Aggarwal’s social media spat and amid a decline in the broader Indian markets, shares of Ola Electric tanked as much 9% during the early trading hours on Monday (October 8). The stock eventually closed the day 8.31% lower at INR 90.82 on the BSE.
The developments come at a time when competitors TVS and Bajaj Auto have started eating into the market share of Ola Electric, which saw its two-wheeler registrations decline 11% month-on-month (MoM) to 23,965 units in September — the lowest monthly vehicle sales since October last year.
On the financial front, Ola Electric’s net loss widened 30% to INR 347 Cr in the first quarter (Q1) of the financial year 2024-25 (FY25) from INR 267 Cr in Q1 FY24. Operating revenue jumped 32% to INR 1,644 Cr during the quarter under review from INR 1,243 Cr in Q1 FY24.
