A day after a heated exchange between Ola Electric CEO Bhavish Aggarwal and comedian Kunal Kamra, the Central Consumer Protection Authority (CCPA) has issued a show cause notice to the electric vehicle (EV) manufacturer.
The notice pertains to alleged violations of consumer rights, misleading advertising, and unfair trade practices, prompting the company to respond within 15 days.
In a filing, Ola Electric confirmed receipt of the notice, stating, “The CCPA has provided a timeline of 15 days to the company to respond to the show cause notice. The Company will respond to the CCPA within the given timeframe with the supporting documents.”
The company emphasized that the notice would not affect its financial, operational, or other activities.
The public spat ignited when Kamra shared a photo on social media of Ola e-scooters collecting dust outside a dealership, questioning whether Indian consumers deserved better treatment.
In response, Aggarwal accused Kamra of being financially motivated to criticize the company and assured that Ola Electric was expanding its network to address backlogs.
Kamra, in turn, labeled Aggarwal as “arrogant” and “substandard,” leading to further exchanges that drew attention online.
Ola Electric has recently faced a surge in consumer complaints, prompting the announcement of its new initiative, “HyperService,” aimed at providing one-day resolutions for service-related issues.
However, the company’s troubles are compounded by a notable decline in sales; in September, Ola Electric’s two-wheeler registrations fell 11% month-on-month to 23,965 units, marking the lowest monthly sales since October of the previous year.
This decline comes at a time when competitors like TVS and Bajaj Auto are gaining market share.
Financially, Ola Electric reported a 30% increase in net loss for the first quarter of the financial year 2024-25, totaling INR 347 crore, up from INR 267 crore in the same period last year.
Despite the losses, the company did experience a 32% jump in operating revenue, rising to INR 1,644 crore from INR 1,243 crore in Q1 FY24.
