Ola Electric Resolves Over 99% of Customer Complaints Amid Regulatory Scrutiny and Rising Stock Value

Ola Electric has reported that it has successfully addressed over 99% of complaints, specifically 99.1% of the 10,644 grievances raised by the Central Consumer Protection Authority (CCPA). The update follows a recent show cause notice issued by the CCPA, which accused Ola Electric of misleading advertisements, unfair trade practices, and potential consumer rights violations. This notice, dated October 7, gave the electric two-wheeler company 15 days to respond to the concerns regarding customer grievances.

In an official filing dated October 21, Ola Electric announced that it had provided necessary clarifications to the CCPA, highlighting the company’s commitment to customer satisfaction. “Of the 10,644 complaints received from the CCPA, 99.1% were resolved to the satisfaction of the customer through Ola Electric’s robust redressal mechanism,” the company stated in a PTI report. The company’s resolution rate comes as a significant statement amid growing consumer complaints and industry scrutiny.

A breakdown of the complaints reveals a wide array of customer concerns. According to News18, 3,364 complaints were related to slow service and repair, while 1,899 complaints stemmed from delays in scooter deliveries. Another 1,459 complaints involved unmet service commitments, leaving customers dissatisfied. Some complaints also focused on alleged misleading advertisements, where Ola Electric was accused of overstating the performance, features, and availability of its electric scooters.

In response to these issues, Ola Electric has partnered with consulting firm EY to improve its after-sales services, streamline spare parts management, and bolster customer support. This partnership represents Ola’s proactive approach in addressing service issues and ensuring a more positive customer experience.

Following this announcement, Ola Electric’s stock saw a significant rise, gaining over 4% during early trading on Tuesday. Shares surged by 4.45%, reaching a peak of Rs 85.30 on the Bombay Stock Exchange (BSE). This stock rally comes as a direct result of the company’s efforts to improve customer service and tackle regulatory concerns, signaling positive investor sentiment towards Ola’s commitment to addressing complaints effectively.

However, Ola Electric’s path hasn’t been entirely smooth. Bhavish Aggarwal, the company’s CEO, recently engaged in a public spat with comedian Kunal Kamra over complaints regarding Ola’s S1 series scooters. The exchange began when Kamra posted a photo showing several Ola scooters gathering dust at a dealership, suggesting inadequate customer service. Aggarwal responded by accusing Kamra of posting a “paid tweet” and questioning the comedian’s motives. The heated exchange attracted significant public attention, highlighting the challenges Ola Electric faces in addressing perceived customer dissatisfaction.

This recent show cause notice and customer feedback emphasize the pressure on Ola Electric to maintain high standards in both product performance and after-sales support. While the regulatory filing underscored the company’s progress in addressing grievances, CCPA scrutiny points to the broader expectation for transparency and reliability in the burgeoning electric vehicle industry.