Bhavish Aggarwal Founder & CEO of Ola
Ola Electric has informed the ARAI and MHI that they would reimburse INR 130cr to its customers for overcharging its customers
Ola Electric, one of the leading EV manufacturers in the Indian EV industry, has made a big announcement. They have announced that they will reimburse all customers who purchased chargers individually. And according to reports, the amount they will reimburse will be around 130 crores.
The source of this information also clarifies that the company has already communicated with the Ministry of Heavy Industries (MHI) about refunding customers the cost of the off-board charger, in response to a probe into overpricing. The news development comes amid a government probe into irregularities in the FAME scheme.
The CEO of Ola Electric, Bhavish Aggarwal, has confirmed that the company is reimbursing its customers who purchased off-board chargers separately when they purchased Ola S1 Pro electric scooters. The amount refunded will be around 130 crores.”
According to one of the government officials who spoke to CNBC-TV18, the Automotive Research Association of India (ARAI) will not take any further action concerning Ola Electric shortly. ARAI was informed by Ola in its letter dated April 30, 2023, that, upon their request, the company would refund the price of the off-board charger (approximately Rs.130 Cr) of the off-board charger to all their customers who purchased the off-board charger as an accessory when purchasing an Ola S1 Pro scooter from FY 2019-20 through March 30, 2023, on their own volition.
In addition, Ola Electric, along with Ather Energy, TVS Motor, and Hero MotoCorp, have forced the original equipment manufacturers (OEMs) of these EVs to artificially decrease the prices of their vehicles to keep their prices artificially low. If kept low, it’s also worth noting that it came under a government scan earlier this year. Claim grants under the Rapid Adoption and Manufacturing of Electric Vehicles (FAME II) program.
In the FAME II scheme, which has a total value of INR 10,000 crore, subsidies are being provided for electric two-wheelers priced at INR 1.50 lakh per vehicle. Allegations against these OEMs said they charged customers above the INR 1.5 lakh threshold by charging the charger and proprietary software separately to claim subsidies.
The price of Ola Electric’s S1 Pro electric scooter has been reduced from 1.39 lakh (INR) to 1.25 lakh (INR) from the previous 1.39 lakh, including the cost of the charger as well as the features in the software.
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