Ola Electric Mobility Limited received yet another show cause notice from the Central Consumer Protection Authority (CCPA), requesting additional documents and information following the company's previous response.
The CCPA has given Ola 15 more days, starting from the email communication on December 4, to submit the required details, the company said in an exchange filing on Thursday. Ola Electric has confirmed it will comply and provide the necessary information within the specified timeframe.
Ola Electric was issued a show cause notice by the CCPA in early October for alleged violations of consumer rights, misleading advertisements, and unfair trade practices. The notice required the company to provide additional documents and information.
In a filing, the company, led by Bhavish Aggarwal, had stated that the CCPA's notice does not impact its financial, operational, or other business activities, nor does it involve penalties or fines.
As of Thursday, Ola Electric’s shares were trading at Rs 98.50 on the BSE.
The company has faced mounting customer complaints regarding after-sales service, software glitches, and hardware issues with its scooters. Ola Electric's market capitalisation recently dipped below $5 billion for the first time since its public listing.
In October, Ola Electric’s CEO, Bhavish Aggarwal, had a heated exchange with comedian Kunal Kamra on social media concerning service issues with the company’s e-scooters. Despite these challenges, Ola Electric is focusing on expanding its service network, planning to double its service centres to 1,000 by December through its 'Hyperservice' initiative.
Ola's market share in the domestic electric two-wheeler segment dropped to 27.9 per cent last month, according to data from the Vahan portal. Competitors like Bajaj Auto, TVS Motor, and Ather Energy have gained ground with market shares of 21.4 per cent, 20.2 per cent, and 14.8 per cent, respectively.
