Key Highlights
- Ola Electric lands in fresh troubles
- Showrooms and dealerships raided
- Regulatory violations leads to store raids
Ola Electric has landed itself in big soup once again. Following the summon notice from the Indian government due to thousands of customer complaints, the company is now facing regulatory troubles. This time, Ola Electric’s service centres and dealerships are getting raided by the regulatory authorities for violating multiple official guidelines.
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Ola Store Raids: Here’s What Went Wrong?
Ola Electric has been planning its expansion in the E2W segment despite numerous hurdles its facing due to increasing customer complaints and multiple official summons. The company recently started getting more backlashes due to its showroom expansion strategy which it revealed earlier.
If we speak of the stats, Ola Electric has already started expanding its presence across India and had launched over 4,000 authorized showrooms. This number has been achieved in the last two years, i.e., since 2022. However, out of these 4,000 stores, Ola had cleared trade certifications for only 100 showrooms.
And the data reveals around 3,400 authorized Ola showrooms being functional which has been violating the Motor Vehicle Act’s regulatory requirements. This staggering figure of 95 percent of Ola’s physical store lacking the necessary trade certifications for operations had led to the raids from the government officials.
Some reports suggests that the Ola Electric stores that have been raided were shut for failing to present the required documentaions. Show cause notice has been once again given to Ola Electric seeking response on the matter.
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Ola’s Response
Ola has brushed off the reports citing raids on its physical stores. In fact, an Ola official has labelled the reports of raids and showcause notice “misplaced”. The company’s CEO is yet to share an official statement on this matter.
