Ola Electric has received a show cause notice from the Central Consumer Protection Authority seeking details of alleged violations of consumer rights, misleading advertisements, and unfair trade practices.
According to a filing by Ola Electric on BSE, the authority has given the company 15 days to respond to the notice.
The notice comes at a time when the EV-maker is dealing with rising consumer complaints about its products.
The company received the show cause notice vide email on October 7, 2024. The filing said the notice has no impact on the company’s financials or operations and does not impose any penalties or financial fines.
The filing comes days after Bhavish Aggarwal, Founder and CEO of Ola Electric, had a public spat on X with comedian Kunal Kamra after Kamra criticised the company’s customer service. Many users on the platform also voiced their dissatisfaction with the company’s customer service.
Reports say the company receives over 80,000 complaints about its vehicles every month. To address mounting concerns, the company has reportedly created a new service team of employees from various divisions to help address concerns over its service quality.
Following the spat, the company saw its share price fall to the lowest since August 12, bringing its market capitalisation to below $5 billion after hitting an all-time high of $8 billion in August.
Ola Electric, currently the market leader in the EV two-wheeler segment, also reported a drop in its market share to 27%. The company’s market share has steadily declined for the past three months.
On the other hand, competitors, including IPO-bound Ather Energy, TVS Motor, and Bajaj Auto, reported a rise in their September sales volume.
