Ola Electric will be in the spotlight this Friday because the Central Consumer Protection Authority (CCPA) has asked for more information from the company. This is regarding a notice they sent earlier about possible problems with how Ola Electric treats its customers. Ola Electric received this email on December 4 and has 15 days to reply.
Back on October 8, the CCPA wrote a notice to Ola Electric, asking them to explain complaints about misleading ads and unfair business practices. Ola Electric responded on October 21, saying they solved 99.1% of the 10,644 complaints they received.
In their stock exchange announcement, Ola Electric stated that this notice won’t affect their business or finances. The company, based in Bengaluru, has faced complaints about after-sales service and issues with their scooters.
Additionally, Ola Electric’s share of the electric scooter market fell by almost 6% in November, dropping to 24.8%. It reported a 30% decline in new scooter registrations—down from 41,161 in October to 28,688 in November.
Citi Research recently started covering Ola Electric and set a target price of Rs 90 for its shares. They noted that while the company is facing challenges with its service, these issues are expected to improve over time as the supply chain stabilizes.
On Thursday, Ola Electric shares ended at Rs 98.5, a slight increase of 0.11%, while the Sensex index went up by 1%. In the past three months, Ola Electric’s shares have dropped by 14.5%. The company’s market value is currently Rs 43,446 crore.
Ola Electric has also been launching new products. They recently introduced two new electric scooters, the S1 Z and Gig, aimed at delivery workers and budget-conscious buyers in India.
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