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According to Ola, 99.1% of customer complaints to the CCPA had been resolved.
India’s consumer affairs secretary told Reuters on Thursday that the country’s leading product certification body will look into service standards and product problems at e-scooter manufacturer Ola Electric.
Following an abnormally high 10,000 complaints, the Central Consumer Protection Authority (CCPA) sent a notice to Ola Electric last month, requesting an explanation from the SoftBank-backed business.
In response, Ola, the leading e-scooter manufacturer in India, stated that 99.1% of the complaints had been addressed.
Nidhi Khare, the consumer affairs secretary, stated on Thursday that the CCPA has now requested that the Bureau of Indian Standards carry out a thorough investigation into the issue after examining that response.
Ola Electric did not immediately respond to a Reuters email seeking comment.
Bhavish Aggarwal, the founder of Ola, stated during an earnings call last week that the majority of the complaints were for “minor” issues.
Aggarwal stated, “In reality, two-thirds of it are just minor issues like loose parts or customers unfamiliar with the software used.”
After making a spectacular market debut in August, the e-scooter manufacturer has been negatively impacted by the growing complaints and the resulting regulatory scrutiny.
The shares of Ola Electric are currently down roughly 7.6% from their 76 rupee listing price. While auto stocks had increased by 0.5 percent that day, its shares were down roughly 1 percent.