The Central Consumer Protection Authority (CCPA) has issued a show-cause notice to Ola Electric, the electric vehicle (EV) company led by Bhavish Aggarwal, amid rising customer complaints and deteriorating conditions at its service centers across India. Ola Electric has been asked to respond to the notice within 15 days.
The CCPA took note of thousands of consumer grievances, highlighting Ola Electric’s potential violation of several provisions under the Consumer Protection Act, 2019. Issues cited by customers include manufacturing defects, incomplete refunds for booking cancellations, recurring technical issues despite servicing, overcharging, inaccurate invoices, and persistent battery and vehicle component malfunctions.
The National Consumer Helpline, operated by the Department of Consumer Affairs, received a staggering 10,644 complaints against Ola Electric since September of last year.
Nidhi Khare, Secretary of the Department of Consumer Affairs, said: “The CCPA is looking into a large number of complaints about Ola Electric, mainly related to service inefficiencies. We hope the company addresses these concerns promptly and resolves the issues faced by consumers.”
Ola Electric has yet to comment on the notice.
The company’s shares fell by 9 percent on Monday, closing at ₹90.26 per share, adding to its woes as it continues to lose market share. Currently, its stock is down around 42-43 percent from its peak.
Analysts have flagged the stock as loss-making and overvalued. In September, Ola Electric’s market share in the Indian EV sector further dropped to 27 percent, facing pressure from rising competition and inadequate service infrastructure.
Customers have taken to social media to voice a fresh wave of concerns over Ola Electric’s flagship electric two-wheelers, further exacerbating the company’s ongoing challenges.