Ola may face government audit after 10,000 consumer complaints: Report

The Ministry of Heavy Industries has initiated an audit of Ola Electric's service centres. According to a Reuters  report, this is due to concerns over delayed and unsatisfactory after-sales service, as well as inaccurate invoices.

The report says, this move aims to increase scrutiny on the electric vehicle (EV) manufacturer, which is currently facing 10,000 complaints.

Eligibility recheck

The audit will assess whether Ola is adequately maintaining its service centres and fulfilling warranty obligations to customers. These are essential conditions for the company to remain eligible for incentives under the government's EV promotion scheme.

The audit will be conducted by the Automotive Research Association of India (ARAI), which is responsible for testing and certification. The Ministry of Heavy Industries has requested comments from ARAI regarding Ola's compliance with the scheme.

“Ola Electric is a beneficiary under the scheme whose eligibility certificate ... has been issued by ARAI. Therefore, you are requested to provide your comments,” the ministry said in a letter to ARAI, the report said.

If the audit finds violations, Ola's eligibility to receive incentives under the government program could be affected, the report added.

Sharp hit on shares

Ola's shares have fallen by 40% this week, following a strong market debut in August. The decline intensified after a social media spat between Ola founder Bhavish Aggarwal and comedian Kunal Kamra, who had raised concerns about Ola's e-scooters.

Ola founder and CEO Bhavish Aggarwal recently engaged in a heated exchange with comedian Kunal Kamra on X over the service issues surrounding Ola Electric's S1 series of EV scooters.

It all began when Kamra shared a photo of an Ola dealership filled with scooters gathering dust, presumably awaiting service. he asked, “Do Indian consumers have a voice? Do they deserve this?” He stressed that two-wheelers are essential for many daily wage workers, particularly gig workers who rely on scooters for their jobs.

Kamra tagged Minister of Road Transport and Highways Nitin Gadkari, asking if this was the way forward for Indian EV adoption, and he also reached out to the Department of Consumer Affairs for a response. Additionally, he invited anyone experiencing issues with Ola Electric to share their stories in their comments.

In response, Aggarwal accused Kamra of posting a “paid tweet.” He challenged Kamra, saying, “Since you care so much @kunalkamra88, come and help us out! I’ll even pay more than you earned for this paid tweet or from your failed comedy career.”

The exchange has sparked a lot of discussion online, with some users criticising Aggarwal’s remarks as rude while others highlighted the growing number of complaints against Ola Electric.