Top consumer rights violation watchdog, the Central Consumer Protection Authority (CCPA) has ordered a detailed probe into Ola Electric's alleged “deficiencies” services and products, according to media reports.
The investigation came after Ola's response to the CCPA notice last month seeking an explanation from the e-scooter maker following unusually high amount of consumer complaints
Top consumer rights violation watchdog, the Central Consumer Protection Authority (CCPA) has ordered a detailed probe into Ola Electric's alleged “deficiencies” services and products, according to media reports.
This came after Ola's response to the CCPA notice seeking an explanation from the e-scooter maker last month, following unusually high amount of consumer complaints. The company responded that 99.1% of the complaints were already resolved.
According to Mint, the CCPA has now asked the Bureau of Indian Standards (BIS) to conduct a detailed investigation into the matter and verify the company’s consumer grievance addressal claims, said consumer affairs secretary Nidhi Khare on Thursday. The BIS was to directed to submit a report within 15 days, with the inquiry formally initiated on November 6.
Reportedly, during the period between September 2023 and August 2024, total 10,644 complaints were filed against the Softbank Group-backed firm, Ola Electric with the National Consumer Helpline (NCH).
Following the show-cause notice issued by the consumer rights watchdog on October 7, 2024, for alleged violation of misleading advertisement and unfair trade practices, India's top e-scooter maker's shares plunged by 6 per cent.
The fall in the share price took place after Ola founder Bhavish Aggarwal and stand-up comedian Kunal Kamra indulged in a social media spat on X regarding Ola's after-sales and service quality.
While Kunal Kamra posted a picture of Ola's gigafactory, by putting a picture of several Ola Electric scooters parked together seemingly waiting for servicing, Aggarwal called him a 'stand-up comic' and claiming that Kamra's post is a paid one.
Aggarwal further asserted that Ola Electric is rapidly expanding its service network and will clear all the backlogs "soon."
Later, many Ola Electric consumers jumped into the spat and complained about the service quality of the company, asking Agarwal to address their issues.
In September, Aggarwal announced the #Hyperservice campaign with the goal of offering technology-led, best-in-class after-sales experience. As part of the announcement, Ola Electric planned to double the company-owned service network to 1,000 centres by December 2024.
As of October 2024, Ola Electric which commands nearly a third of the market share in India's e-scooter market, has added more than 50 service centres and has hired over 500 service technicians across new and existing service centres to streamline operations and clear all backlogs.