Govt Will Now Audit Ola Service Centres After 10,000+ Complaints Received – Trak.in
Ola Electric, one of India’s leading electric vehicle (EV) manufacturers, is facing intense scrutiny from the Ministry of Heavy Industries after 10,000 consumer complaints were lodged against the company. These complaints focus on delayed and unsatisfactory after-sales service, along with issues related to inaccurate billing. In response, the government has ordered an audit of Ola Electric’s service centers to assess the situation and ensure compliance with the terms of its EV incentives scheme.
Consumer Complaints and After-Sales Service Issues
Ola Electric, known for its popular e-scooters, has come under fire for its poor handling of after-sales services. The complaints cover a wide range of issues, including long delays in repairs, subpar customer service, and incorrect invoices. Many customers have expressed dissatisfaction with Ola’s inability to maintain service quality, raising concerns about the company’s overall management and responsiveness.
The government’s decision to order an audit was based on these escalating complaints. The Automotive Research Association of India (ARAI), a government agency responsible for testing and certification, will conduct the audit. ARAI will assess whether Ola’s service centers are operating efficiently and if the company is honoring its warranty obligations, which are essential for eligibility under the government’s electric vehicle promotion scheme.
Potential Impact on Government Incentives
Ola Electric has benefited from government incentives aimed at promoting electric vehicles in India. However, with the mounting complaints and the government’s intervention, the company’s eligibility to continue receiving these incentives could be at risk. If the audit reveals any significant violations, Ola could lose access to the subsidies that have been crucial to its growth in the EV market.
The Ministry of Heavy Industries, in its communication to ARAI, emphasized the need for Ola to address the issues promptly. If found in violation of the scheme’s requirements, Ola’s eligibility certificate could be revoked, significantly affecting its business.
Share Price Plummet and Market Concerns
Following the announcement of the audit and the continued backlash, Ola’s shares have taken a massive hit, plummeting by 40% this week. The drop came after a stellar market debut in August, highlighting the volatility the company is currently facing. Ola’s CEO, Bhavish Aggarwal, has also been involved in a public spat on social media with comedian Kunal Kamra over complaints about Ola’s e-scooters, further fueling negative sentiment.
With a growing backlog of service requests and dissatisfaction among consumers, Ola Electric’s future in India’s competitive EV market appears uncertain.
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