MHI seeks inputs from ARAI on complaints against Ola Electric
Ola Electric is a beneficiary of the FAME II and PM E-DRIVE schemes, and its eligibility certificate has been provided by ARAI.
The Ministry of Heavy Industries (MHI) has directed the Automotive Research Association of India (ARAI) to provide detailed inputs regarding consumer complaints against Ola Electric.
Ola Electric is a beneficiary of the FAME II and PM E-DRIVE schemes, and its eligibility certificate has been provided by ARAI, a certification and testing agency under the administrative control of the Ministry.
On October 7, the Central Consumer Protection Authority issued a show cause notice to Ola Electric for alleged violation of consumer rights, misleading advertisement, and unfair trade practices.
As per FAME II and PM E-DRIVE schemes, original equipment manufacturers (OEMs) are required to maintain service centres to address customer issues. Further, a warranty is also provided under these two schemes by all OEMs, including Ola Electric.
The authority has provided a timeline of 15 days for the company to respond to the show cause notice, the filing said.
Ola Electric, in a stock market filing, said the notice has no impact on the company’s financials or operations and does not impose any penalties or financial fines.
Ola Electric, currently the market leader in the EV two-wheeler segment, has reported a drop in its market share to 27%. The company’s market share has steadily declined in the past three months.
On the other hand, competitors, including IPO-bound Ather Energy, TVS Motor, and Bajaj Auto, have reported a rise in their September sales volume
Shares of Ola Electric were trading 4.78% lower at Rs 91.20 apiece on NSE at 2 PM.
(With additional inputs from PTI)
Edited by Suman Singh