MHI seeks ARAI's comments on consumer grievances against Ola Electric

The Ministry of Heavy Industries (MHI) has requested the Automotive Research Association of India (ARAI) to provide its views on the growing number of consumer grievances against Ola Electric. This follows a show-cause notice issued to the electric vehicle manufacturer by the Central Consumer Protection Authority (CCPA) on October 3, 2024.

ARAI, a premier institution under MHI, is responsible for vehicle certification, safety testing, and emissions compliance in India. It plays a critical role in ensuring that vehicles meet regulatory standards and has certified Ola Electric’s vehicles under the government’s Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) and PM Electric Drive Vehicle (E-DRIVE) schemes.

The notice from CCPA came in response to 9,948 consumer complaints registered against Ola Electric between September 1, 2023, and August 30, 2024, on the National Consumer Helpline. These complaints, ranging from delayed deliveries and defective vehicles to misleading advertisements and poor customer service, prompted the CCPA to act. Ola Electric has been given 15 days to respond to the notice, with the possibility of regulatory action if the company fails to comply.

In response to the CCPA notice, Ola Electric has said that the show-cause notice from the Central Consumer Protection Authority “would not impact” its activities and that the company will file a response to the notice within the 15-day deadline.

Given ARAI’s role in certifying Ola Electric’s eligibility under the FAME II scheme, which mandates service centre operations and warranty support for consumers, MHI has sought ARAI’s comments on the grievances. The move underscores the Ministry’s emphasis on holding original equipment manufacturers (OEMs) accountable that have taken benefits under its schemes.

This inquiry aims to safeguard consumer rights, especially as the electric vehicle market expands. The outcome of this review could have broader implications for other manufacturers benefiting from the FAME II and PM E-DRIVE schemes.