Ola Electric shares dropped amid regulatory scrutiny from the Automotive Research Association of India (ARAI) over its recent pricing strategies.
Ola could face legal action and risk losing subsidies under the PM E-DRIVE.
Earlier, CCPA issued a show cause notice to Ola Electric over alleged consumer rights violations,
Shares of Ola Electric
dropped as much as 3% to INR 87.34 during intraday trading on the BSE today (October 14) amid regulatory scrutiny from the Automotive Research Association of India (ARAI) over its recent pricing strategies.
The stock later recovered slightly, closing at INR 87.50, down 2.68% from the previous close of INR 90.19. A total of 4,00,695 shares were traded today, with the company’s market capitalisation at about INR 38,608 Cr (about $4.6 Bn) by the session’s end.
According to a Business Standard report, ARAI has asked Ola Electric to explain why it did not inform the authority about a price cut for its S1X 2kWh model before launching the ‘BOSS’ sale.
If ARAI finds violations of regulatory guidelines, Ola could face legal action and risk losing subsidies under the PM Electric DRIVE Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme.
Additionally, the Ministry of Heavy Industries (MHI) recently requested that ARAI confirm whether Ola Electric is fulfilling warranty obligations and maintaining required service centers.
The company, led by Bhavish Aggarwal, has faced growing criticism over customer complaints related to after sales service.
Last week, Aggarwal clashed on social media with comedian Kunal Kamra, who highlighted these complaints, leading to a public argument.
Separately, the Central Consumer Protection Authority (CCPA) issued a show cause notice to Ola Electric over alleged consumer rights violations, misleading advertising, and unfair trade practices.
After which it directed the company to make consumer-friendly adjustments, such as offering refunds and providing receipts for auto rides.
Ola Electric’s stock fell 6% on October 10. Since reaching a post-listing high of INR 157 in August, the stock has dropped nearly 44%.
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Ola Electric Shares Tumble 3%, Amid Regulatory Scrutiny Over ‘BOSS’ Sale
Ola Electric shares dropped amid regulatory scrutiny from the Automotive Research Association of India (ARAI) over its recent pricing strategies.
Ola could face legal action and risk losing subsidies under the PM E-DRIVE.
Earlier, CCPA issued a show cause notice to Ola Electric over alleged consumer rights violations,
Shares of Ola Electric dropped as much as 3% to INR 87.34 during intraday trading on the BSE today (October 14) amid regulatory scrutiny from the Automotive Research Association of India (ARAI) over its recent pricing strategies.
