India’s Central Consumer Protection Authority (CCPA) has initiated an in-depth investigation into Ola Electric, after receiving an overwhelming number of complaints about the company’s service practices and product reliability.
To be precise, this probe comes on the heels of more than 10,000 complaints that have been lodged with the National Consumer Helpline (NCH) against Ola Electric within the span of a year. The complaints range across September 2023 to August 2024, and paint a rather disturbing picture – a wide range of issues that include delayed repairs, warranty disputes, and technical failures in the company’s electric scooters. In addition to this, consumers also cited dissatisfaction with the post-sale service, alleging instances of unprofessional behavior, delayed deliveries, and unresolved refund claims.
In its defense, Ola Electric claimed it had resolved 99.1% of the reported complaints to customers’ satisfaction. However, this assertion was contradicted during a verification process initiated by the CCPA. In a sampling of 287 customers conducted by the NCH, only 130 could be reached, and of those, 103 of them expressed dissatisfaction with the company’s handling of their grievances.
The complaints also pointed to broader issues of potential misleading advertisements and unfair trade practices. Many consumers reported discrepancies between Ola Electric’s marketing claims and the actual performance of its products. The company has been accused of exaggerating features and specifications, leading to heightened expectations that were ultimately unmet.
Specific grievances related to overcharging for repairs, issuing incorrect invoices, and refusal to provide necessary documentation have compounded the dissatisfaction among Ola’s customers. Recurring technical issues, especially with batteries and vehicle components, have also been reported. In the wake of this development, the CCPA directed the Bureau of Indian Standards (BIS), India’s national certification agency, to investigate the matter. The BIS director general is serving as ex-officio Director General of Investigation, in this case, and will examine the complaints to determine if Ola Electric has violated established norms for electric vehicle manufacturing and service. The investigation, formally initiated on November 6, 2024, requires a detailed report to be submitted within 15 days. Regulatory action will be taken on the basis of the results.