Key Highlights
- OLA to reimburse approx. Rs. 130 crores to its buyers
- Development comes after a probe from the Ministry of Heavy Industries
- OLA was charging an additional amount for the charger as an accessory
- Ather, Hero, and TVS also under the radar
Ola seized the big opportunity in EV space with the launch of the Ola S1 series. The electric scooters from Ola broke all records in terms of popularity amongst Indian consumers. But seems like not all if rosy for OLA. The company might soon have to refund approx. Rs. 130 crores to its buyers. This development is coming after a probe on the company was closed by the Ministry of Heavy Industries for overpricing. Why exactly Ola needs to return this massive amount to the consumers and who will get the refund? Below are the details:
Also Read: Simple One Electric Vs Ola S1 Pro Vs Hero Vida V1: Top E-Scooter Model That You Can Buy In 2023
Why OLA Electric Will Refund Money To Consumers?
The Ministry of Heavy Industries (MHI) apparently shared a recovery notice with Ola Electric stating no FAME II subsidy approval unless consumers are reimbursed the extra amount they paid for charger. OLA has been asked to pay over Rs. 130 crores to the consumers who had additionally bought the e-scooter charger as an accessory.
Who All Will Get Reimbursement From OLA?
OLA has reportedly sent a notice to ARAI stating that the company will return the stated amount to the consumers for the off-board charger purchase. But only the customers who have purchased the charger along with the Ola S1 Pro electric scooter in the FY 2019-20 will be getting the reimbursement. This is further valid for the off-board charger purchases made till March 30, 2023.
If we speak of the exact amount that OLA will be returning to each consumer then it could easily range between Rs. 9,000 to Rs. 19,000. It is worth adding that OLA has been selling the charger along with the S1 Pro electric scooter as an added accessory. This is one of the reasons it came under MHI (Ministry of Heavy Industries) radar for overpricing.
Seems like this add-on service eventually became expensive for the brand itself. Reports suggests that if OLA bundled the charger along with the S1 Pro e-scooter then the brand might have to spend up to Rs. 100 crore additionally. But the reimbursement of approx. Rs. 130 crores will now be heavy on the company’s pockets.
Also Read: Top Latest Budget Electric Scooter Launched In India: Ola And Okaya
Any Other Brands Under Radar?
Not just OLA, rumors are rife that Ather Energy, Hero Motocorp, and TVS Motors are also under the Ministry of Heavy Industries’ radar. But any action on these brands is yet to be taken.
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