INDIA'S top product certification agency, the Bureau of Indian Standards, will investigate e-scooter maker Ola Electric over service and product-related issues, consumer affairs secretary Nidhi Khare told Reuters on Thursday.
The probe follows a notice sent by the Central Consumer Protection Authority (CCPA) to Ola Electric last month, seeking an explanation after the agency received 10,000 complaints about the SoftBank-backed company's products and services.
Ola Electric responded by stating that it had resolved 99.1 per cent of the reported complaints. After reviewing the company's reply, the CCPA asked the Bureau of Indian Standards to conduct a detailed investigation, Khare confirmed.
On an earnings call last week, Ola’s founder, Bhavish Aggarwal, described the complaints as "minor issues." He stated, "Two-thirds of it actually are just minor issues like loose parts or customers unfamiliar with the software used."
The rising number of complaints and regulatory scrutiny have come after Ola Electric's strong market debut in August. The company’s shares have declined about 7.6 per cent from their listing price of 76 rupees (£0.71). On Thursday, the shares were down 1 per cent, while auto stocks saw a 0.5 per cent rise.
(With inputs from Reuters)
Scott Bessent