More Trouble For Ola Electric, Served Another Show Cause Notice By CCPA

Woes for Ola Electric don't seem to end anytime soon. The Indian EV startup has been served another show cause notice by the Central Consumer Protection Authority (CCPA). The latest notice seeks additional information and documents regarding the complaints raised by consumers. 

Ola has 15 days to respond to the show cause notice and has issued the following statement, "We would like to inform you that the company has received further communication from the CCPA via email dated December 4, 2024, seeking additional documents and information in relation to the previous response submitted by the company." It also claimed that the latest notice hasn’t had an impact on its operations, business or there has been any financial impact or fines and penalties.

The company had received the first notice on October 7 when CCPA questioned the company over the 10,000 plus complaints it had received regarding service issues, poor customer care and misleading advertisement. In reply, Ola Electric claimed that 99.1 of the 10,644 were addressed.

The show cause notice comes in the background of dwindling sales and market share for the EV startup. Based on sales data on Vahan Portal, registered sales of Ola scooters stood at 27,74 units, which was significantly less than the 40,000 units it had managed during the festive season in October, 2024. In the same month, its rivals, TVS and Bajaj recorded good sales. Owing to this, Ola’s market share has now fallen to 24 per cent, whereas that of TVS and Bajaj stand at 23 and 22 per cent respectively. If the above trend continues, Ola might lose its hold on the Indian EV market after a long run of being on the top spot.