Electric two wheeler manufacturer Ola Electric, will be reimbursing approximately Rs 130 crores to customers. Sources have told CNBC-TV18 that in response to the probe initiated by Ministry of Heavy Industries for overpricing, the company has informed the government they will reimburse the cost of the off board charger.
"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 March 30, 2023", said a government official.
When asked about the government's probe and suspension of subsidies, Ola Electric Founder and CEO Bhavish Agarwal had recently told CNBC-TV18 that the company will do whatever the government asks them to do. When asked about the latest developments, the company said that Ola Electric remains in touch with the government to resolve all issues.
Hero MotoCorp, TVS Motor Company, Ather Energy and Ola Electric have been under scrutiny by Ministry of Heavy Industries following whistleblower complaints. According to the complaints, all four companies were charging customers over and above the Rs 1.5 lakh threshold under the central government's FAME scheme for availing the subsidies. The companies had earlier claimed that the additional cost was for additional software features and the off board charger. Both Ather Energy and Ola Electric have also reduced the cost of their electric scooters to meet the scheme's eligibility criteria.
Ola Electric has recently brought down the cost of their electric scooter from Rs 1.39 lakh to Rs 1.24 lakh, inclusive of the cost of charger and software features. Ola Electric is also likely to submit a duly certified statement to ARAI when all customers have received amount due to them.
