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.

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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.