The company said there is no price cut, only a limited-time festive campaign offering a general discount of Rs 5,000 to all customers and a higher discount of Rs 25,000 to a few customers.
15 Oct 2024 | 4806 Views | By Amit Vijay M
Ola Electric, India's largest electric two-wheeler maker has taken the stand that it has not slashed the price of its entry-level S1 X 2kWh scooter, as suggested in a notice issued by Automotive Research Association of India (ARAI).
The ARAI had asked Ola for an explanation after the company ...
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Ola Electric, India's largest electric two-wheeler maker has taken the stand that it has not slashed the price of its entry-level S1 X 2kWh scooter, as suggested in a notice issued by Automotive Research Association of India (ARAI).
The ARAI had asked Ola for an explanation after the company started offering its scooter for around Rs 50,000. However, said ARAI, the company had submitted a factory-gate price of Rs 75,001 at the time of filing for inclusion in the PM E Drive scheme.
The PM E Drive scheme offers buyer-end subsidy to spur demand for electric vehicles at the rate of Rs 5,000 per kWh of battery capacity. The S1 X 2kWh therefore qualifies for a subsidy of Rs 10,000 per unit.
As part of the application process, the company has to declare various details about the model, including its ex-factory price. Any changes in any of these details have to be intimated to the ARAI.
However, said Ola Electric, the current scheme is limited, both in time and inventory, and does not constitute a price cut.
ARAI had asked why Ola is selling the S1 X 2kWh scooter for less than the stated ex-factory price of Rs 75,001.
Under its "BOSS 72-hour Rush", the model is available for Rs 49,999 for a limited time each day.
In a regulatory filing, Harish Abichandani, Chief Financial Officer at Ola Electric, said: "We have not changed the price of the Ola S1 X 2KWh. We are running a limited-time festive campaign, offering a general discount of Rs 5,000 to all customers and a higher discount of Rs 25,000 to a few customers with extremely limited inventories."
Ola officials have also stated in their response that they provided a copy of the invoice dated October 6, 2024, as proof that customers received a Rs 5,000 discount, as well as a screenshot of the app confirming that the price of the Ola S1 X 2KWh had not changed.
The company said that the Rs. 25,000 discount was only available for a limited time.
Experts in the government say that If ARAI finds the response unsatisfactory, Ola Electric could face legal action and lose subsidies for its electric vehicles under the PM Electric DRIVE Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) initiative.
"We submitted our response to ARAI and have not received any further communication from ARAI in this regard," the company informed its investors.
The Central Consumer Protection Authority (CCPA) recently issued a notice to Ola Electric following over 10,000 complaints about its poor after-sales service in the past year.
The CCPA also asked Ola Electric to ensure transparency in its ride-booking services by allowing customers to choose their preferred refund mode and providing bills, receipts, or invoices for every car ride booked through the platform.