Ola Electric to refund Rs 130 crore to its S1 Pro customers
Bangalore-based electric scooter manufacturer Ola Electric will refund about Rs 130 crore to its customers that it charged separately for off-board EV chargers. In a letter to ARAI, Ola stated that customers who purchased off-board chargers as an accessory with the S1 Pro between FY 2019-20 to 30 March, 2023, will receive a full refund of approximately Rs 130 crore.
Ola Electric EV Charger Refund: Explained
According to sources of CNBC-TV18, Ola has responded to the investigation started by the Ministry of Heavy Industries for overpricing and has informed the government of India that it will reimburse the cost of off-board chargers.
Since Ola has agreed to refund the amount, the Automotive Research Association of India (ARAI) has stated that it will not take any action against the electric two-wheeler manufacturer.
"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," a government official told CNBC-TV18.
FAME scheme irregularities
It came to light as the government of India started a probe into the FAME scheme irregularities after whistleblowers accused several electric two-wheeler companies for overpricing their offerings over and above Rs 1.50 lakh price cap under the FAME scheme. As claimed, the brands, such as Ola, TVS, Hero MotoCorp, and Ather Energy, sold additional software features and the off-board chargers to their customers for additional cost, to be eligible for FAME subsidies. Meanwhile, Ola and Ather recently reduced prices of their offerings, the S1 line-up and 450X, to meet the eligibility criteria of FAME scheme.
Source - CNBC-TV18