Ola Electric gets another show cause notice from the CCPA
The Central Consumer Protection Authority (CCPA) had issued a show cause notice to Ola Electric in early October seeking details of alleged violations of consumer rights, misleading advertisements, and unfair trade practices.
on Thursday notified stock exchanges that it has received another show cause notice from the Central Consumer Protection Authority (CCPA) amidst mounting consumer complaints.
The consumer watchdog has sought additional documents and information concerning the EV maker’s response on October 22.
CCPA had issued a show cause notice to Ola Electric in early October seeking details of alleged violations of consumer rights, misleading advertisements, and unfair trade practices.
Ola Electric responded to the notice stating that it has addressed 99.1% of the 10,644 complaints it received from CCPA. The watchdog has now requested more details related to this response.
The company has been given a timeline of 15 days from the date of email communication to submit its response. Ola Electric disclosed that it received the notice dated December 4.
Bhavish Aggarwal-led Ola Electric has been in troubled waters amidst regulatory scrutiny and rising consumer dissatisfaction over its products and services.
The company has announced a number of measures to combat these issues including adding more than 50 service centres and hiring over 500 service technicians across new and existing centres to streamline operations and clear backlogs.
It is also targeting to increase the number of stores to 4,000 by December 20th, this year. The expansion includes over 3,200 outlets in addition to its existing 800 stores. All these stores will also have service capacity.
Following this announcement, shares of the company rose 6.68% to Rs 93.26 on BSE on December 2. The company’s shares closed at Rs 98.50 on the stock exchange today.
These steps also come amidst Ola Electric’s market share declining to 24.7% in November compared to October. Amidst its dwindling market share, the company on November 26 said it had launched its SIZ and Gig range of electric scooters with deliveries set to begin in April 2025, in an attempt to capture a piece of the booming gig economy pie.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric.)
Edited by Jyoti Narayan