Ola Electric Faces CCPA Show-cause Notice Amid Rising Consumer Complaints

Ola Electric has received a show-cause notice from the Central Consumer Protection Authority (CCPA) due to a surge in consumer complaints, which allege violations of consumer rights, misleading advertisements, and unfair practices. This news follows a 9 per cent decline in Ola Electric’s share price, triggered by chief executive officer (CEO) Bhavish Aggarwal's social media exchange with comedian Kunal Kamra over customer concerns.

The company plans to respond to the CCPA within the 15-day timeframe and assures stakeholders that its financials and operations remain unaffected by the notice. Ola Electric has been facing an influx of approximately 80,000 customer complaints monthly, as per media reports.

In a further shake-up, Ola's Secretary and Compliance Officer resigned on Monday for personal reasons. Currently, Ola Electric’s shares are trading at Rs 89.01, with a market capitalisation of around Rs 39,256 crore (approximately USD 4.6 billion).

The company’s market share has also taken a hit, falling to 27 per cent in September from 39 per cent in July, illustrating a consistent decline over the past three months.

For the June quarter (Q1 FY25), Ola Electric's revenue from operations experienced modest growth of 2.8 per cent, rising to Rs 1,644 crore from Rs 1,598 crore in Q4 FY24. Notably, the company successfully reduced its losses by 16.6 per cent, lowering them to Rs 347 crore in Q1 FY25. In FY24, Ola Electric reported a total revenue of Rs 5,010 crore alongside a loss of Rs 1,584 crore.