Latest report indicates that Ola Electric will be reimbursing approximately Rs 130 crores to its customers.
How Did This Happen?
The company has informed the government that it will reimburse the cost of the off board charger, in response to the probe initiated by the Ministry of Heavy Industries for overpricing.
According to a government official, “the Automotive Research Association of India (ARAI) will not be taking any further action against Ola Electric, as the company announced in its letter to ARAI dated April 30, 2023 that, on their own volition, they will reimburse the price (approximately Rs. 130 crore) of the off-board charger to all customers who have bought the off-board charger as an accessory when purchasing an Ola S1Pro model scooter from FY 2019-20 until March 30, 2023,”.
Recently, the Ola Electric Founder and CEO Bhavish Agarwal said that the company will do whatever the government asks them to do, when asked about the government’s probe and suspension of subsidies.
Why Would This Happen?
While talking about the latest developments, the company said that Ola Electric remains in touch with the government to resolve all issues.
It appears that Electric two wheeler manufacturer, Hero MotoCorp, TVS Motor Company, Ather Energy and Ola Electric have been under scrutiny by the Ministry of Heavy Industries following whistleblower complaints.
The complaints indicate that these four companies were charging customers over and above the Rs 1.5 lakh threshold under the central government’s FAME scheme for availing the subsidies.
In its defense, these companies had claimed that the additional cost was for additional software features and the off board charger earlier.
It seems that Ather Energy and Ola Electric, both have reduced the cost of their electric scooters to meet the scheme’s eligibility criteria.
Similarly, Ola Electric has brought down the cost of their electric scooter from Rs 1.39 lakh to Rs 1.24 lakh, inclusive of the cost of charger and software features recently.
In this regard, Ola Electric is also likely to submit a duly certified statement to ARAI when all customers have received the amount due to them.
