Consumer Complaints and Sales Discrepancies Plague Ola Electric

The Heavy Industries Ministry has tasked ARAI to investigate discrepancies in Ola Electric's reported sales versus registrations and consumer complaints. The company's registry reported 8,652 vehicles for February, while sales surpassed 25,000 units. Ola Electric is also facing insolvency proceedings initiated by Rosmerta Digital Services Ltd.

The Heavy Industries Ministry has commissioned the Automotive Research Association of India (ARAI) to investigate discrepancies in Ola Electric's sales data against actual registrations, in light of numerous consumer complaints. The ARAI, a key certification body for electric vehicles, has been instructed to deliver its findings within 15 days.

The controversy stems from the mismatch between Ola Electric's registration figures on the Vahan portal, which reported 8,652 vehicles in February, contrasting sharply with the company's claimed sales of over 25,000 units. Ola Electric, also facing scrutiny for consumer grievances, finds itself under regulatory and legal pressure, as its registration process is reportedly back on track following temporary disruptions.

Adding to its challenges, Ola Electric is dealing with insolvency proceedings instituted by Rosmerta Digital Services Ltd. The service provider, according to filings, has sought a corporate insolvency resolution against Ola Electric Technologies Pvt Ltd, alleging payment defaults. These proceedings coincide with Ola's internal restructuring efforts, resulting in significant job cuts.

(With inputs from agencies.)