Authority (CCPA) has sent Ola Electric another warning for deceptive advertising and infringement of consumer rights. The business has fifteen days to submit more supporting paperwork. Despite efforts to expand, this occurs while market share is decreasing and customer complaints over technical and service concerns are increasing.
After the company’s initial answer, the Central Consumer Protection Authority (CCPA) sent Ola Electric Mobility Limited another show-cause notice, this time asking for further information and documentation.
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Ola stated in an exchange filing on Thursday that the CCPA has granted the business a further 15 days, beginning from the email exchange on December 4, to provide the necessary information. Ola Electric has affirmed that it would adhere to the rules and supply the required data in the allotted period.
In early October, the CCPA sent Ola Electric a show-cause notice for suspected unfair trading practices, deceptive advertising, and consumer rights breaches. The notification demanded more information and papers from the business.
The company, under the leadership of Bhavish Aggarwal, had claimed in a filing that the CCPA’s notification had no effect on its operational, financial, or other business operations and that there were no penalties or fines associated with it.
As of Thursday, Ola Electric’s shares were trading at Rs 98.50 on the BSE.
Customers have been complaining more and more about the company’s scooters’ hardware, software, and after-sales support. For the first time since becoming public, Ola Electric’s market capitalization fell below $5 billion.
Bhavish Aggarwal, the CEO of Ola Electric, and comedian Kunal Kamra got into a heated argument on social media in October over problems with the company’s e-scooters’ service. Nevertheless, Ola Electric is concentrating on growing its service network and intends to use its ‘Hyperservice’ effort to increase its service centers to 1,000 by December.
According to data from the Vahan portal, Ola’s market share in the domestic electric two-wheeler category fell to 27.9% last month. With market shares of 21.4%, 20.2%, and 14.8%, respectively, rivals Bajaj Auto, TVS Motor, and Ather Energy have risen in the rankings.
