Ola Electric's Share Drops 3% Amid Investigation into Pricing Practices

Ola Electric shares closed nearly 3% lower on Monday-third straight session of fall-after the Automotive Research Association of India asked the electric vehicle company to clarify its pricing practices.

The EV company has been asked by the automotive testing agency, which comes under the Ministry of Heavy Industries, for clarifications on slashing the price of the S1 X 2 kWh electric two-wheeler in the recently announced sale.
Share of Ola Electric closed at Rs 87.44 apiece. The stock has lost its sheen from its all-time high of Rs 157.40.

In case it is not satisfactory enough, Ola Electric will also be pulled into courts and lose the subsidies on its electric vehicles under the PM Electric DRIVE Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.

The reports say that an action will be taken within the purview of the law and the guidelines provided in the E-DRIVE scheme in case of violations.

Ola Electric, run by Bhavish Aggarwal, has also been issued a notice by the Central Consumer Protection Authority (CCPA) after the National Consumer Helpline (NCH) received complaints of more than 10,000 in the last year over poor after-sales service from it.
Ola Electric has been given 15 days to respond to the CCPA's showcause notice.

Meanwhile, the Centre has asked Ola to put in place a mechanism where consumers can decide through which mode they want the refund is to be made, and also provide consumers with a bill or receipt or invoice for all auto rides booked through its platform. According to NCH figures, as many as 2,061 complaints have been registered against Ola from January 1, 2024, till October 9.

The top complaints include paying higher rates than that which is advertised to the consumer at the time of booking the ride; not refunding the amount to the consumer; driver asking for extra cash and driver not reaching the correct location or dropping at an incorrect location.