MHI Seeks ARAI’s Input on Consumer Grievances Against Ola Electric Following CCPA Show-Cause Notice

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

ARAI, a key institution under MHI, is tasked with vehicle certification, safety testing, and emissions compliance in India. As part of its responsibilities, ARAI certified Ola Electric’s vehicles under the government's Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) and the PM Electric Drive Vehicle (E-DRIVE) schemes. These certifications are crucial for ensuring vehicles meet regulatory standards.

The CCPA’s notice stems from a significant surge in consumer complaints—9,948 grievances—filed against Ola Electric between September 1, 2023, and August 30, 2024, via the National Consumer Helpline. The complaints, which range from delayed deliveries and defective vehicles to misleading advertisements and subpar customer service, prompted CCPA's intervention. Ola Electric has been given 15 days to respond to the notice, with the possibility of further regulatory action if they fail to comply.

In response, Ola Electric stated that the show-cause notice would not affect its operations and confirmed its intention to submit a formal reply within the 15-day window.

Given ARAI’s role in certifying Ola Electric’s compliance with the FAME II scheme, which mandates service center availability and warranty support for consumers, MHI has requested ARAI to comment on these consumer grievances. This move highlights the Ministry’s focus on holding original equipment manufacturers (OEMs) accountable, particularly those benefiting from government subsidies and incentives under its schemes.

The outcome of this inquiry could set a precedent for other EV manufacturers participating in the FAME II and PM E-DRIVE initiatives, reinforcing the importance of consumer rights in the expanding electric vehicle market.