Key Highlights:
- Ola Electric denies violating the PM E-DRIVE scheme, stating discounts are part of a limited-time campaign.
- The Automotive Research Association of India (ARAI) sought an explanation from Ola over scooter pricing.
- ARAI warns of potential subsidy withdrawal if Ola’s response is unsatisfactory.
- Central Consumer Protection Authority issued notice to Ola over after-sales service complaints.
Ola Electric, India’s leading electric two-wheeler maker, has responded to concerns from the Automotive Research Association of India (ARAI) over the pricing of its entry-level scooter, S1 X 2kWh. ARAI questioned whether the company’s recent discount campaign violated the PM E-DRIVE scheme. However, Ola maintains that its festive discounts are temporary offers, not a reduction in the official scooter price.
Discount Clarified as Limited-Time Campaign
Ola Electric launched the “BOSS 72-hour Rush” offer, making the S1 X 2kWh scooter available for Rs 49,999 for limited periods each day. This triggered ARAI to issue a notice, seeking clarification since the ex-factory price declared earlier was Rs 75,001. Ola responded, stating there has been no permanent price reduction—only temporary festive discounts.
Details of the PM E-DRIVE Scheme and Subsidy
The PM E-DRIVE scheme offers subsidies of Rs 5,000 per kWh for electric vehicles, with the S1 X 2kWh model qualifying for a total subsidy of Rs 10,000. Ola’s compliance with the scheme requires the company to declare its factory-gate price to ARAI. Any price change must be communicated to ARAI.
Ola asserts that no price change has occurred and provided evidence, including invoices and app screenshots, to support this claim.
ARAI’s Warning and Possible Outcomes
If ARAI finds Ola’s response unsatisfactory, the company could face legal repercussions and may lose subsidies under the PM E-DRIVE initiative.
Ola confirmed to its investors that the company has submitted a detailed response to ARAI and is awaiting further communication.
After-Sales Complaints and Consumer Protection Notice
In addition to ARAI’s scrutiny, Ola Electric has also attracted attention from the Central Consumer Protection Authority (CCPA). The CCPA issued a notice to the company following over 10,000 complaints about poor after-sales service. The Ministry of Heavy Industries is also investigating the issue.
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ELCTRIK Speaks
Ola Electric’s clarification aims to address concerns over the alleged pricing violation. However, the company is under growing regulatory pressure, with investigations not only into the PM E-DRIVE compliance but also its after-sales service. Ola’s ability to maintain transparency and meet regulatory expectations will be crucial to avoid losing subsidies and ensuring customer satisfaction moving forward.