Ola Electric Faces Govt Audit After 10,000 Complaints About Poor Service – Shares Plunge 40%

The Ministry of Heavy Industries has ordered an audit of Ola Electric’s service centres after receiving 10,000 consumer complaints about delayed service, poor after-sales support, and incorrect invoices, according to a report by Reuters on October 10.

This audit will put more pressure on Ola Electric, which is already facing government scrutiny. The EV company’s shares dropped 40% this week, following a market spat between Ola CEO Bhavish Aggarwal and comedian Kunal Kamra over issues with Ola’s e-scooters.

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Audit to Ensure Ola’s Eligibility for Government Incentives

The audit will check if Ola is maintaining its service centres properly and honoring its warranties, which are key conditions to receive incentives under the government’s EV promotion program. The audit will be conducted by the Automotive Research Association of India (ARAI), and further actions will depend on its findings.

If Ola is found to be violating these conditions, it could lose its eligibility for government benefits, the source added.

Service Centre Issues

A previous investigation revealed that many Ola service centres were understaffed and had significant backlogs. Some centres had over 100 scooters waiting for service, with many left neglected. Analysts from HSBC also noted that Ola’s service centres were struggling to keep up with the number of requests.