The email communication, sent on December 4, 2024, gives the company 15 days to respond. The CCPA had served the show cause notice to Ola Electric on October 8, citing alleged violations of consumer rights, misleading advertisements, and unfair trade practices.
Ola Electric responded on October 21, claiming to have resolved 99.1% of the 10,644 complaints it had received.
In an exchange filing on Thursday, the Bhavish Aggarwal-led company stated that the CCPA notice would not affect its financial, operational, or other activities.
The Bengaluru-based company has faced increased challenges recently, with a rise in customer complaints. These issues have ranged from after-sales service to software glitches and hardware problems with its scooters.
Ola Electric’s market share in the electric two-wheeler segment fell by nearly six percentage points in November, dropping to 24.8%, according to vehicle registration data from the government’s Vahan portal. New vehicle registrations also declined by 30%, from 41,161 units in October to 28,688 in November.
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Global brokerage firm Citi Research recently initiated coverage of Ola Electric with a ‘Buy’ rating and a target price of Rs 90. The firm acknowledged the company’s challenges with its service reputation, stating, “We admit service perception has been negative of late, but expect it to subside over the medium term as back-end supply chains catch up with volume growth.” Despite these challenges, Ola Electric has been expanding its product portfolio. It recently launched two new electric scooter models — the S1 Z and Gig — aimed at gig economy workers and cost-conscious consumers in India.
Shares of Ola Electric ended at Rs 98.5 on Thursday.
