Ola Electric to reimburse cost of chargers to eligible customers amid pricing probe

Indian electric vehicle (EV) major Ola Electric will be reimbursing the cost of charger to all eligible customers, the company said in a statement today. 
 
“As a leader, we remain committed to putting our customers first. Therefore, setting aside the technicalities and as an example for others to follow, we have decided to reimburse the charger monies to all eligible customers,” the statement read.
 
For the unversed, EV companies such as Hero Motor, TVS Motor, Ather Energy and Ola came under the scanner a few days ago following a couple of whistleblowing complaints. CNBC TV18 had reported that all four companies were charging customers over and above the Rs 1.5 lakh threshold under the central government's FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme for availing the subsidies. The companies had earlier claimed that the additional cost was for additional software features and the off-board charger.
 
This led to the Ministry of Heavy Industries launching a probe for overpricing of the off-board chargers. 
 
However, things took a u-turn for Ola when a statement from ARAI came to the forefront. 
 
The CNBC TV18 report quoted a government official who said that the Automotive Research Association of India (ARAI) will not be taking any action against Ola Electric as the company has agreed to reimburse the price of the off-board charger.
 
"The Automotive Research Association of India 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 March 30, 2023."
 
While Ola, in its statement, did not mention the amount it will be reimbursing, the Bengaluru-based company noted, “This move will not only demonstrate our commitment to the EV revolution but also serves to strengthen trust and add more value for our customers.”
 
Ola Electric is a leader in the Indian EV space. Nearly 7.3 lakh electric two-wheelers (E2Ws) were sold in the country in FY23, which is 3X higher than the volume sold in FY22, according to Redseer’s latest electric mobility report. Ola Electric’s market share was 22 per cent in FY23. In the March quarter (Q4 FY23), however, its share went up to 30 per cent. 
 
In a recent interview with Business Today, Ola Electric boss Bhavish Aggarwal had shared, “The future of EV is going to be technology-led and there are two or three major technologies that will define that. One is software and the other is energy and cell. We have expertise in both. So, once we master these technologies and build a platform, we can easily build different product segments on it. And once our supply chains are built out at scale on these core technologies, it will be very hard for anybody to compete.”

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