Ola Electric gains 3% after the company lists measures taken to improve its reputation

Ola Electric shares rose more than 3% on Tuesday, October 15, a day after the electric vehicle company listed measures it was taking amid growing consumer complaints.

The company has come under scrutiny after the Central Consumer Protection Authority (CCPA) issued a show cause notice to Ola Electric following a wave of over 10,000 complaints received on the National Consumer Helpline (NCH).

Consumer Affairs Secretary and CCPA Chairman Nidhi Khare told CNBCTV-18 that they had been receiving complaints against Ola Electric at NCH toll-free number 1915. The CCPA has classified the more than 10,000 complaints into 10 broad categories and has asked Ola Electric for urgent redress.

In an exchange filing on October 14, Ola said it plans to double its owned service center network to 1,000 by December 2024 as part of its “Hyperservice” campaign. The company first made this announcement on September 27, long before receiving the CCPA filing notice. The company also said it would add 10,000 sales and service partners by the end of 2025.

The company also said it will begin an electric vehicle service training program to train 100,000 outside mechanics.

Currently, the company operates around 800 stores and approximately 500 service centers.

Apart from the CCPA, sources in the Ministry of Highways also told CNBCTV-18 that the ministry is aware of the situation at Ola and may seek an explanation regarding the customers’ complaints.

He The Automotive Research Association of India (ARAI) also plans to seek information from Ola Electric about its warranty claims and service centers.sources revealed to CNBC-TV18. The agency aims to investigate whether Ola has fulfilled its commitments related to vehicle warranty, maintenance and service claims.

Ola Electric made its debut on the stock exchanges in August after its Rs 6,145 crore initial public offering was subscribed 4.45 times. The stock is trading exactly at its IPO price of ₹76.

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