Ministry of Heavy Industries Scrutinizes Ola Electric Amid Rising Consumer Complaints

New Delhi: The Ministry of Heavy Industries (MHI) has directed the Automotive Research Association of India (ARAI) to provide detailed inputs regarding consumer complaints against Ola Electric. This move intensifies scrutiny on the electric vehicle (EV) manufacturer, which is currently facing over 10,000 complaints from consumers.

Ola Electric’s shares experienced a significant decline, plummeting 40% this week, following a strong market debut in August. The company's troubles were exacerbated when founder and CEO Bhavish Aggarwal engaged in a social media dispute with comedian Kunal Kamra, who publicly criticized Ola's e-scooters.

In a letter to ARAI, the ministry stated, “Ola Electric is a beneficiary under the scheme whose eligibility certificate ... has been issued by ARAI. Therefore, you are requested to provide your comments.”

Ola Electric is a participant in the FAME II and PM E-DRIVE schemes, which promote electric mobility in India. ARAI, a certification and testing agency under the MHI, is responsible for issuing eligibility certificates to such companies.

Adding to Ola Electric's challenges, the Central Consumer Protection Authority issued a show cause notice to the company on October 7 for alleged violations of consumer rights, including misleading advertisements and unfair trade practices.

Under the FAME II and PM E-DRIVE schemes, original equipment manufacturers (OEMs) like Ola Electric are mandated to maintain service centers to effectively address customer issues. Additionally, these schemes ensure that warranties are provided by all OEMs, including Ola Electric, to protect consumer interests.

As the situation develops, it remains to be seen how Ola Electric will address these concerns and restore consumer confidence in its products.