2024-10-10 14:41:41 :
The Ministry of Heavy Industries has requested an audit of Ola Electric’s service centers to identify cases of delayed, unsatisfactory after-sales services and inaccurate invoices, Reuters reported on October 10, citing sources and official documents.
It added that the move would increase pressure on the electric vehicle (EV) maker, which is already under government scrutiny over 10,000 complaints against the company.
Ola’s shares have fallen 40% this week since its listing in August. The biggest blow came when Ola founder and CEO Bhavish Aggarwal got into a social media feud with comedian Kunal Kamra over complaints about Ola’s electric scooters After the altercation.
Conduct audits to ensure eligibility for government incentives
The report added that the audit is aimed at ensuring that Ola maintains its service centers and honors the warranty offered to consumers. Sources told Reuters these are the conditions it must meet to qualify for incentives under the government’s electric vehicle promotion program.
Sources added that the ministry’s testing and certification body Automotive Research Association of India (ARAI) will conduct an audit and once the audit is completed, the next steps will follow.
Ola, the ministry and ARAI reportedly did not immediately respond to queries.
“Ola Electric is a beneficiary of the scheme and its eligibility certificate… has been issued by ARAI. Therefore, your input is requested,” the department said in its letter to Arai.
Ola’s eligibility for incentives under government schemes could be affected if irregularities are found, sources added.
Large backlog of orders
The Reuters report added that when they visited 35 Ola centers in 10 states in India last year, they found that many centers were facing serious backlogs due to lack of staff. In one centre, more than 100 scooters were parked, many covered in bird droppings.
HSBC analysts said in a report in September that they visited multiple Ola service centers and most “appeared to be inundated with service requests.”
(With information from Reuters)
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