Ola Electric in trouble, CCPA Seeks Documents on Consumer Rights Violations

The troubles of Ola Electric, one of the big electric two-wheeler companies, are increasing. The Central Consumer Protection Authority (CCPA) has asked to provide additional documents regarding the notice given to the company on alleged violation of consumer rights and unfair business practices.

An email has been sent by CCPA in this regard to Ola Electric on 4th December. The company has been asked to provide the information sought in this email within 15 days. Sales of electric two-wheelers have increased rapidly in the last few years. Ola Electric has the highest share in this segment. In early October, CCPA had issued a show cause notice to the company over alleged violation of consumer rights, misleading advertisements and unfair business practices.

The company’s sales have declined by approximately 33 percent last month. According to vehicle portal data, registrations of Ola Electric’s electric scooters in November stood at 27,746 units. This is a decline of about 33 percent in the sales of Ola Electric on a month-on-month basis. There was a surge in the company’s sales due to the festive season in October. Last month, Ola Electric’s market share declined to 24 percent. This figure was more than 30 percent in October. However, the company’s first position in this segment remains intact. TVS Motor ranks second in this market with about 23 percent share. Ola Electric plans to increase its network of stores four times.

The company has about 800 stores. Their number will be increased to about 4,000 this month. Service facility is also available at the company’s existing stores. Earlier this week, the company’s CEO, Bhavish Aggarwal, had said in a post on social media platform X that Ola Electric will increase its network of stores to about 4,000. The new stores will be launched on December 20. With this, Ola Electric aims to deliver electric two-wheelers to every pincode in the country. This will also be the largest distribution network of Electric Vehicles (EV) in the country. Recently the company had also expanded its portfolio of electric scooters. Ola Electric introduced the S1 Z last month. This electric scooter will be available in two variants.