Highlights
- Ola Electric agrees to reimburse customers who had purchased the off-board charger after a Ministry of Heavy Industries probe
- The company has been found guilty of overpricing its products to get government subsidies
- Hero MotoCorp, TVS Motor Company and Ather Energy have also come under the Ministry’s radar
EV startup Ola Electric will be returning Rs 130 crore to 1 lakh customers who have purchased the off-board electric charger from the company. The declaration was reportedly made by Ola Electric in a letter to the Automotive Research Association of India (ARAI) after the company came under a probe conducted by the Ministry of Heavy Industries for overpricing.
These developments come after companies such as Hero MotoCorp, TVS Motor Company, Ather Energy and Ola Electric came under the radar after whistleblower complaints suggested the companies priced their offerings over and above the Rs 1.5 lakh price mark to induct government subsidies.
Ola Electric to refund Rs 130 crore: here’s what happened
- Ola Electric came under the Ministry of Heavy Industries radar after whistleblowers brought four major EV companies under the microscope.
- Hero MotoCorp, TVS Motor Company, Ather Energy and Ola Electric were allegedly pricing their offerings above the Rs 1.5 lakh-mark to avail government subsidies. The companies had earlier cited additional software features and the off-board charger as the reason for the higher-than-usual pricing.
- The Ministry of Heavy Industries conducted a probe on Ola Electric on the issue.
- The Bengaluru-based EV startup also recently brought the prices on its Ola S1 Pro electric scooter down from Rs 1.39 lakh to Rs 1.24 lakh (both prices ex-showroom). This is to meet the scheme’s eligibility criteria.
- Ola Electric has now notified ARAI in a letter that it will be reimbursing its customers the price of the off-board charger. This could amount to a total of approximately Rs 130 crore.
- Customers who purchased the charger with their Ola S1 Pro electric scooter from FY 2019-20 until March 30, 2023, will benefit from this reimbursement.
- Ola CEO Bhavish Aggarwal said to CNBC-TV18 that the company will do whatever the government asks them to do when asked about the recent probe and the suspension of subsidies. Aggarwal also added that the company is in constant touch with the government to resolve all such issues.
- There is no word on the actions taken on the other three companies which have come under the radar of the Ministry of Heavy Industries.
