Ola Electric Mobility shares in focus today; here's why

Shares of Ola Electric Mobility Ltd are in focus on Friday morning after Central Consumer Protection Authority (CCPA)sought additional documents and information in relation to the previous response submitted by the company.

To recall, Ola Electric had received a show cause by (CCPA) amid consumer complaints regarding its vehicles. Ola Electric had then said it has a robust mechanism to address complaints raised with respect to its vehicles and suggested that out of 10,644 complaints it received from the CCPA, 99.1 per cent of the complaints were resolved to the complete satisfaction of the customer as per Ola Electric’s robust redressal mechanism.

On Thursday, Ola Electric said: "We would like to inform you that the company has received further communication from the CCPA via email dated December 4, 2024, dated October 7, 2024 and October 21, 2024, regarding the intimation of Show Cause Notice received by Ola Electric Mobility Limited (“the Company”) from the Central Consumer Protection Authority (“CCPA”)."

Ola Electric said the CCPA has provided a timeline of 15 days from the date of email communication for the Company to submit the response in respect of seeking additional documents and information. "The company will ensure a timely response within the specified timeframe," it said.

Kotak Institutional Equities in its initiation report on Ola Electric on October said the recent surge in complaints about the company’s products and after-sales service negatively affected the brand image, which can impact the company’s
volume growth. The competitive intensity in the EV 2W space is increasing, which will weigh on Ola Electric’s market share, it noted.

Ola Electric shares are down 15 per cent in the past three months against a flattish BSE Sensex.

Ola Electric is the largest pure play EV 2W OEM in India, with a vertically integrated strategy and capabilities to develop and manufacture key components of e-2W such as motors, battery, BMS and software to gain a competitive advantage.