A consumer commission in Kerala directed Ola Electric to pay over ₹1.30 lakh in compensation to a customer for deficiency in service and unfair trade practice. The order includes a refund of ₹1,03,999 paid for the electric scooter, ₹25,000 as compensation, and ₹5,000 towards complaint costs, following repeated problems with the scooter during the warranty period, according to livemint.com.
The complaint arose after the customer experienced multiple issues with the electric scooter and failed to receive proper after-sales service from Ola Electric. The Kerala consumer commission found the company guilty of service deficiency and unfair trade practice, leading to the compensation order. The ruling highlights the challenges faced by consumers in securing effective warranty support from electric vehicle manufacturers, as detailed by livemint.com.
This ruling comes amid a growing electric vehicle market in India, where companies like Ola Electric and Ather Energy are expanding rapidly. The sector recently saw a positive boost as the government extended subsidies under the PM E-Drive scheme until FY28, increasing the allocation to ₹11,900 crore and raising the number of eligible vehicles to 4.57 million. Despite this growth, consumer protection issues remain critical, as reflected in this compensation case against Ola Electric, per livemint.com.
Ola Electric's shares surged up to 5% on August 11, alongside Ather Energy, following the subsidy extension announcement. The government’s move to support electric two-wheelers through increased subsidies aims to accelerate adoption, with the latest allocation expected to impact over 4.5 million vehicles, according to livemint.com.