Ola Electric to refund Rs 130 crore to customers for off-board chargers, says government sources

The government ordered the Automotive Research Association of India to investigate in February

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New Delhi : According to government sources, Ola Electric, the biggest electric scooter maker in the nation, would refund its consumers roughly Rs 130 crores for off-board chargers. According to official sources, the business would initiate this return in response to the Ministry of Heavy Industries’ February inquiry.

According to a government official, “The Automotive Research Association of India (ARAI) will not be taking any further action against Ola Electric, as the company announced in its letter to ARAI dated April 30, 2023 that, on their own volition, they will reimburse the price (approximately Rs. 130 crore) of the off-board charger to all customers who have bought the off-board charger as an accessory when purchasing an Ola S1Pro model scooter from FY 2019-20 until Marc

In a recent media interview, Ola Electric founder and CEO Bhavish Agarwal addressed this news. The CEO said the corporation will follow India’s demands and rectify any concerns.

Ola, Ather, TVS Motor, and Vida, four of India’s largest electric two-wheeler manufacturers, were investigated by the government for underpricing their vehicles to qualify for FAME subsidies. Senior government officials said these EV manufacturers may have improperly claimed Rs 300 crores in subsidies.

A whistleblower accusation that these four businesses illegally claimed subsidies totalling at least Rs 300 crore by billing critical components like the charger and proprietary software separately from the two-wheeler prompted the Ministry of Heavy Industries to investigate.

The government ordered the Automotive Research Association of India to investigate in February. The government is also investigating almost a dozen more electric two-wheeler manufacturers for allegedly failing to meet localization requirements.

By offering up to 40% off retail, FAME companies received government subsidies. Lowering EV prices increased sales. Under Phase II, electric two-wheeler manufacturers received Rs 2,000 crore.

On April 1, 2019, the government authorised Phase-II of the FAME Scheme with a budget of Rs. 10,000 crore for three years. The Demand Incentive received 86% of the financial help to grow the national xEV market. This phase supported 7000 e-Buses, 5 lakh e-3 Wheelers, 55000 e-4 Wheeler Passenger Cars (including Strong Hybrid), and 10 lakh e-2 Wheelers to stimulate demand.

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