Regulatory scrutiny rises for Ola Electric
A probe into Ola Electric has been launched following thousands of consumer complaints, raising questions about the e-scooter maker’s product and service standards despite its claim of resolving most issues.
India’s consumer affairs department has launched an investigation into Ola Electric over alleged deficiencies in product and service standards. The move follows a notice sent last month by the Central Consumer Protection Authority (CCPA), citing over 10,000 complaints against the country’s leading e-scooter manufacturer.
Ola Electric, backed by SoftBank, claims to have resolved 99.1% of the issues, which founder Bhavish Aggarwal described as mostly minor, such as loose parts or software-related queries. However, the CCPA has now tasked the Bureau of Indian Standards with a detailed probe into the company’s practices.
The scrutiny comes amid a recent downturn in Ola Electric’s market performance, with its shares dropping 7.6% since its August debut. While Ola downplays the severity of complaints, the investigation could impact its reputation in India’s competitive EV market.