Electric scooter makers under lens over 12K after-sales service complaints

The scrutiny follows a recent announcement from Ola Electric, which claimed to have resolved almost all of its complaints registered with the CCPA

The Central Consumer Protection Authority (CCPA) has received over 12,000 complaints related to the after-sales service of major electric two-wheeler manufacturers, including Bajaj Auto Ltd, TVS Motor Co, and Ather Energy Ltd.

 

According to a report in NDTV Profit, the Department of Consumer Affairs has initiated a probe into these companies. However, no official statement has been released yet.

 

This scrutiny follows a recent announcement from Ola Electric, which claimed to have resolved almost all of its complaints registered with the CCPA. Ola’s Chief Financial Officer, Harish Abichandani, reported that 99.1 per cent of the 10,644 complaints the company received were satisfactorily addressed.

 

Despite this, Ola Electric, a leading electric two-wheeler manufacturer, has seen its market share shrink, reportedly due to significant customer dissatisfaction with after-sales support. This has led to a backlog at service centres and a show-cause notice from the government over alleged breaches of the Consumer Protection Act.

 

Govt scrutiny extends to broader market practices

 

The CCPA's investigation of Ola Electric is part of a wider effort to ensure consumer protection standards across industries with high complaint rates. The Department of Consumer Affairs is focusing on sectors with frequent consumer grievances to identify whether issues are isolated or indicative of broader market challenges.

 

Last week, Chief Commissioner Nidhi Khare highlighted issues in Ola’s refund policy, which currently provides future ride coupons rather than cash refunds, a practice found to infringe on consumer rights. As a result, the CCPA has directed Ola to make its refund policy more customer-friendly and to issue receipts for all auto rides, which had previously been omitted, a practice now deemed an unfair trade under the Consumer Protection Act of 2019.

 

Ola Electric has also faced inquiries from the Automotive Research Association of India (ARAI), which is investigating whether the company complies with warranty and pricing requirements established by government subsidies. These investigations underscore a push for higher standards in after-sales service as the electric vehicle market in India continues to grow.