The Ministry of Heavy Industries has intervened because Ola Electric’s models qualify for a demand subsidy under the PM E-Drive scheme.
After the Central Consumer Protection Authority issued a show cause notice to Ola Electric, citing violations of consumer rights, misleading advertisements, and unfair trade practices, the Ministry of Heavy Industries has taken action by seeking insight from the Automotive Research Association of India (ARAI). According to a senior government official, the Ministry’s involvement comes as Ola Electric benefits from the PM E-Drive scheme, which offers subsidies to encourage the purchase of electric two-wheelers. As the designated testing and certification agency under the FAME and PM E-Drive schemes, ARAI plays a critical role in overseeing compliance and standards for eligible vehicles.
The Ministry has officially requested that ARAI provide its comments promptly on the matter. Ola Electric’s models, namely the S1 Pro, S1 Air, and S1 X, currently receive these government subsidies, emphasizing their significance within this framework.
The Ministry highlighted the obligations of each Original Equipment Manufacturer (OEM) under the FAME II and PM E-Drive schemes. These requirements include maintaining adequate service centres to handle consumer issues and providing warranties, with Ola Electric being no exception.
On a related note, the Central Consumer Protection Authority took a firm step on Monday by delivering the show cause notice to Ola Electric. The company was given 15 days to respond to the allegations.
Data from the National Consumer Helpline portal show that Ola Electric faces significant customer dissatisfaction. The most frequent complaints, numbering 3,664, relate to service and repair delays. Additionally, there are 1,899 complaints about delays in delivering new vehicles and 1,459 instances where promised services were not fulfilled. Furthermore, 761 customers have reported manufacturing defects, and 672 expressed dissatisfaction with Ola Electric’s responses to their complaints filed via the consumer helpline.
