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India's Top Product Certification Agency to Investigate Ola Electric's Service

CIO Insider Team | Friday, 15 November, 2024
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According to reports, India’s top product certification agency will investigate e-scooter maker Ola Electric's deficiency in service standards and product issues.

Last month, the Central Consumer Protection Authority (CCPA) sent a notice to Ola Electric asking for an explanation from a SoftBank-backed company after the Consumer Rights Agency received an unusually high 10,000 complaints.

Ola, India's top e-scooter manufacturer responded that it had resolved 99.1 percent of complaints.

After confirming its response, the CCPA is now asking the Indian Bureau of Standards to conduct a detailed investigation into the matter.

“The complaints were mostly for minor issues,” says Ola's founder Bhavish Aggarwal.

Rising complaints and subsequent regulatory scrutiny have overshadowed the electronic scooter maker following its stellar market debut on May 8.

Shares of Ola Electric are down about 76 percent from the 7.6 rupees listing price. On the day, its shares fell about 1 percent, and auto shares rose 0.5 percent.

Two-thirds of it is just minor issues like loose parts or customers unfamiliar with the software used

Headquartered in Bangalore, Ola Electric operates the country’s largest integrated and automated manufacturing plant, with R&D facilities in India, the UK, and the US, including a Battery Innovation Centre. In a recent regulatory filing, Ola Electric said it had resolved almost all complaints lodged with the CCPA.

"Two-thirds of it is just minor issues like loose parts or customers unfamiliar with the software used,” says Bhavish.

An angry customer recently took to social media to complain about poor service, delays and repair issues related to Ola Electric's e-scooter. On May 10, the EV maker had been in the news after spitting among its founders and social media over inadequate service among stand-up comedians.



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