Bhavish Aggarwal's Ola Electric Gets Consumer Body Notice; What's The Matter?

Ola Electric Mobility Ltd has received another show cause notice from the Central Consumer Protection Authority (CCPA), requesting additional documents and information regarding the company’s handling of consumer complaints. This follows previous notices issued in October 2024.

Ola Electric: 15-Day Deadline

The CCPA’s latest communication, sent via email on December 4, 2024, requires Ola Electric to submit its response within 15 days. The company has assured a timely reply, emphasizing its commitment to addressing the authority’s queries comprehensively.

Related Issues and Market Update

Ola Electric has faced several service-related challenges in recent months. Despite these issues, the company’s shares have shown resilience, closing 0.11 per cent higher at Rs 98.50 on Thursday. This marks a 47.9 per cent recovery from its all-time low of Rs 66.60 on November 22.

The latest action came after several customers raised complaints about the hardware, software, and after-sales support of Ola. For the first time since going public, Ola Electric's market capitalization fell below $5 billion.

Ola Electric: ASM Framework Placement

Meanwhile, BSE and NSE have placed Ola Electric’s securities under the short-term Additional Surveillance Measure (ASM) framework. This action aims to caution investors about potential volatility but is not indicative of adverse action against the company. Also, On December 20, Ola Electric will open 4,000 Ola Electric Stores across India.

About Ola Electric

Founded in 2017, Ola Electric is an EV manufacturer specializing in two-wheeler electric vehicles and core EV components, including battery packs, motors, and vehicle frames. Its operations are centered at the Ola Future Factory.