Ola Electric Receives Show-Cause Notice From CCPA, Share Price Drops, Amidst E-Spar B/W Bhavish And Kamra

The Central Consumer Protection Authority (CCPA) has issued a show-cause notice to Ola Electric in response to a surge in consumer complaints alleging infringement of consumer rights, misleading ads, and unfair business practices.

This news comes after Ola Electric’s share price fell 9% as a result of CEO Bhavish Aggarwal’s social media dispute with comedian Kunal Kamra about consumer complaints. The corporation intends to react to the notice within the 15-day period allowed by the CCPA. Furthermore, Ola’s market share dropped to 27% in September, from 39% in July.

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According to Ola Electric’s disclosure, the Central Consumer Protection Authority (CCPA) issued a show-cause notice for alleged infringement of consumer rights, misleading advertising, and unfair business practices.

Ola Electric will react to the CCPA within 15 days and has assured stakeholders that the notification will have no impact on its finances or operations. According to a recent estimate, Ola Electric receives around 80,000 customer complaints each month.

The Secretary and Compliance Officer of Ola Electric resigned on Monday, citing personal reasons and responsibilities.

The Bengaluru-based company’s shares are presently trading at Rs 89.01 (as of 10:28 AM), with a market valuation of Rs 39,256 crore (about $4.6 billion).

The company’s market share has also declined over the last three months, falling to 27% in September from 32% in August, 39% in July, and 49% in June.

Ola Electric’s revenue from operations increased by only 2.8% in the June quarter (Q1 FY25), to Rs 1,644 crore from Rs 1,598 crore in Q4 FY24. However, the company was able to cut its losses by 16.6%, bringing them down to Rs 347 crore in Q1 FY25. During FY24, it earned Rs 5,010 crore in sales and lost Rs 1,584 crore.