Ola Electric responds to exchanges on ARAI notice regarding ‘Boss’ sale | Company News
Bhavish Aggarwal-led Ola Electric on Tuesday informed exchanges about an October 8 email from the Automotive Research Association of India (ARAI), which raised concerns about Ola’s failure to notify it of a price reduction for its S1 X 2 kWh model before launching the ‘Boss’ sale.
In a statement to exchanges, Ola said that it has not changed the price of the S1 X 2 kWh model. The company noted that it is running a limited-time festive campaign, offering a general discount of Rs 5,000 to all customers and a higher discount of Rs 25,000 to a select few, applicable only to limited inventories.
During the ‘Boss’ sale, Ola dropped the price of the S1 X 2 kWh model to as low as Rs 49,999, down from Rs 74,999. Buyers of other S1 versions received discounts of up to Rs 25,000, while those opting for the flagship S1 Pro could avail of a Rs 5,000 exchange bonus.
“As part of our response, we have enclosed an invoice raised on October 6, 2024, which evidenced the fact that a discount of Rs 5,000 was given to customers. Furthermore, as part of our response, we have enclosed a screenshot of the app where it is specifically mentioned that we have not changed the price of Ola S1 X 2 kWh and the discount of Rs 25,000 was extended only for very limited inventory,” Ola stated.
In its October 8 notice to Ola, ARAI questioned the price change and the company’s failure to inform the agency—an oversight that could impact the model’s eligibility for a subsidy under the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.
On October 9, the Ministry of Heavy Industries directed ARAI to investigate consumer complaints related to Ola Electric. This directive followed a show-cause notice issued by the Central Consumer Protection Authority (CCPA) to the electric vehicle manufacturer on October 3. The notice was based on 9,948 complaints received between September 2023 and August 2024, mainly related to delayed deliveries, defective products, and misleading advertisements.
First Published: Oct 15 2024 | 8:22 PM IST
