Troubles Mount For Ola Electric As Road Transport Ministry Investigates Consumer Complaints: Report

In recent months, Ola Electric has come under increased scrutiny regarding several operational areas, such as service quality, customer support, and product reliability

The Ministry of Road Transport and Highways (MoRTH) is reportedly investigating complaints against Ola Electric regarding service-related issues. According to a report from Business Today TV citing sources, the ministry plans to take action this week by requesting a detailed report from the company to address consumer concerns.

In recent months, Ola Electric has come under increased scrutiny regarding several operational areas, such as service quality, customer support, and product reliability. This growing concern has led the MoRTH to adopt a proactive approach, ensuring that the electric vehicle manufacturer meets the standards expected in the fast-evolving EV market. 

Meanwhile, the Central Consumer Protection Authority (CCPA) has issued a notice to Ola Electric pointing out potential violations of consumer rights and acknowledging thousands of grievances concerning service shortcomings. It has issued a showcause notice to the company.

The notice, dated October 3, indicates that Ola Electric "appears to be in violation of several provisions of the Consumer Protection Act, 2019," citing issues such as service deficiencies, misleading advertisements, unfair trade practices, and infringements on consumer rights. The company has been given 15 days from the date of receipt to respond to the notice.

The National Consumer Helpline (NCH), managed by the Department of Consumer Affairs, reported receiving 10,644 complaints regarding Ola Electric's e-scooters from September 1, 2023, to August 30, 2024. Among these, 3,389 complaints—almost one-third—were related to service delays for existing e-scooters, while 1,899 complaints concerned delays in delivering new vehicles. Additionally, 1,459 complaints were filed regarding promised services that were not fulfilled.

The showcause notice elaborated on various consumer allegations, including claims that vehicles were sold with manufacturing defects, second-hand vehicles were marketed as new, and customers received partial or no refunds for booking cancellations. It also highlighted recurring defects despite servicing, instances of overcharging, inaccurate invoices, and numerous issues related to batteries and vehicle components. Furthermore, complaints were made against Ola Electric regarding unprofessional conduct and inadequate resolution of customer grievances.