Ola Electric shares fall nearly 3pc for third consecutive session

The automotive testing agency, functioning under the Ministry of Heavy Industries, has requested clarification from the EV company regarding the price reduction for its S1 X 2 kWh electric two-wheeler in the recently announced sale.

New Delhi: Ola Electric shares closed nearly 3 per cent down on Monday – a fall for the third consecutive session – as the Automotive Research Association of India (ARAI) asked the EV firm to clarify its pricing practices.

The automotive testing agency, operating under the Ministry of Heavy Industries, has asked the EV company to provide clarification about a price reduction for its S1 X 2 kWh electric two-wheeler in its recently announced sale.

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Ola Electric’s share closed at Rs 87.44 apiece. The stock has lost its sheen from its all-time high of Rs 157.40.

If fails to provide a satisfying answer, Ola Electric may face legal action and potentially lose the subsidies its electric vehicles are eligible for under the PM Electric DRIVE Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.

According to reports, if any violations are found, action is likely to be taken in accordance with the law and the E-DRIVE scheme guidelines.

Bhavish Aggarwal-run Ola Electric has also been slapped with a notice from the Central Consumer Protection Authority (CCPA), after the National Consumer Helpline (NCH) received over 10,000 complaints in the last one year regarding its poor after-sales service.

Ola Electric needs to reply to the CCPA’s show-cause notice within 15 days.

Meanwhile, the Centre on Sunday directed Ola to implement a mechanism allowing consumers to choose their preferred method of refund, and to provide consumers with a bill or receipt or invoice for all auto rides booked through its platform. As per information on NCH, 2,061 complaints have been registered against Ola from January 1, 2024, till October 9.

The top complaints included higher fares charged from consumers than what was shown at the time of booking the ride; non-refund of the amount to the consumer; driver asking for extra cash and driver not reaching the correct location or dropping at an incorrect location.