Ola Electric to refund Rs 130 crores to customers for overpricing of EV charger
Ola Electric has announced to refund approximately Rs 130 crores to customers who bought EV chargers from the company.
Electric two wheeler manufacturer Ola Electric has announced to refund approximately Rs 130 crores to customers who bought EV chargers from the company.
According to a report by CNBC-TV18, the electric two-wheeler company has informed the government that they will reimburse the cost of the off-board charger in response to the probe initiated by Ministry of Heavy Industries for overpricing.
The Automotive Research Association of India (ARAI) will not be taking any further action against Ola Electric, as the company announced this on their own violation to reimburse the price (approximately Rs. 130 crore) of the off-board charger to all customers. This refund will be given to buyers who have purchased the off-board charger as an accessory when purchasing an Ola S1Pro model scooter from FY 2019-20 until March 30, 2023.
“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”, said a government official.
Replying to the queries about the government’s probe and suspension of subsidies, Ola Electric Founder and CEO Bhavish Agarwal stated that the company will comply with whatever the government orders will be. He also added that they are in touch with government to resolve all issues.
Ministry of Heavy Industries have ben inspecting Hero MotoCorp, TVS Motor Company, Ather Energy and Ola Electric after complaints about the companies charging customers over and above the Rs 1.5 lakh threshold under the central government’s FAME scheme for availing the subsidies. The companies had earlier claimed that the additional cost was for additional software features and the off board charger. Both Ather Energy and Ola Electric have also reduced the cost of their electric scooters to meet the scheme’s eligibility criteria.
Ola Electric has recently cut down the price of their electric scooter from Rs 1.39 lakh to Rs 1.24 lakh, inclusive of the cost of charger and software features. Ola Electric is also likely to submit a duly certified statement to ARAI when all customers have received amount due to them.
(Source: CNBC-TV18)
Ms Kalinga