Following the Central Consumer Protection Authority’s show cause notice to Ola Electric for violation of consumer rights, misleading advertisement and unfair trade practices, the Ministry of Heavy Industries has sought comments from the Automotive Research Association of India (ARAI) on the issue, according to sources familiar with the matter.
The ministry has stepped in, as Ola Electric is a beneficiary of the PM E-Drive scheme, which provides demand subsidies on the purchase of electric two-wheelers. ARAI is the testing agency for the FAME and PM E-Drive scheme, and it issues the eligibility certificates under the scheme.
The Ministry has sent a letter to ARAI, seeking comments at an early date. Ola Electric’s two electric scooters – S1 Pro, S1 Air, and S1 X are eligible for demand subsidies under the government scheme.
“As per FAME II and PM E-Drive scheme, each OEM is required to maintain service centres to attend to customer issues. Further, a warranty is also provided under these two schemes by all OEMs including Ola Electric,” the Ministry said to ARAI, in a letter seen by Autocar Professional.
On Monday, the Central Consumer Protection Authority issued the show cause notice to Ola Electric, giving it 15 days to respond to charges of violating consumer rights, engaging in unfair trade practices, and issuing misleading advertisements.
According to the National Consumer Helpline portal, of the nearly 10,000 complaints received, the most common issues raised by consumers have been about service and repair delays, totalling 3,664.
There are approximately 1,899 complaints about delays in new vehicle deliveries, as well as 1,459 complaints about promised services that were not delivered.
Additionally, 761 customers reported manufacturing flaws in their vehicles, and 672 were dissatisfied with the company’s response after filing complaints with the consumer helpline, according to the data.