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escalated customer complaints prompted service of official notice to Ola corporation

Brand received a show cause notice earlier in the month, with a 15-day deadline to respond.

Company Ola Faces Action for Increasing Customer Feedback Due to Escalating Customer Grievances
Company Ola Faces Action for Increasing Customer Feedback Due to Escalating Customer Grievances

escalated customer complaints prompted service of official notice to Ola corporation

Ola Electric, the leading electric scooter manufacturer in India, has received a show cause notice from the Central Consumer Protection Authority (CCPA) due to service issues faced by customers. The notice, sent on October 3, points out deficiencies in service, violation of consumer rights, misleading advertisements, and unfair trade practices.

The notice comes after the Department of Consumer Affairs received 10,644 complaints against Ola Electric in the last one year. Over one-third of these complaints were related to after-sales services, with many customers reporting delays in deliveries and services promised but not offered.

One of the major concerns raised in the notice is the replacement of the trailing link suspension on many scooters that came for servicing, a fact that Ola Electric has never acknowledged. This issue has been a significant point of contention for customers, with many reporting incidents of Ola scooters in Maharashtra experiencing fires and front trailing link suspension collapses.

Despite the telescopic fork on the Ola S1 Gen 2, the company has never accepted any issues with the trailing link suspension on its older models. The poor after-sales service of Ola Electric has had a negative impact on the brand's image, with many customers reporting that their complaints were not addressed positively.

The CCPA notice also highlights the company's alleged use of misleading advertisements and unfair trade practices. With increased competition from legacy brands in the EV segment, Ola Electric needs to regain the trust of its buyers to survive.

In response to the show cause notice, Ola Electric has confirmed receiving the notice and will be filing a response shortly. The company has faced a decrease in market share at an alarming rate over the past few months, despite being the market leader in scooter sales.

As the electric vehicle market continues to grow in India, it is crucial for manufacturers like Ola Electric to prioritise customer satisfaction and maintain transparency in their operations to build and maintain consumer trust.

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