Ola Electric, an electric two-wheeler manufacturer receives a show-cause notice from the Central Consumer Protection Authority (CCPA) on October 7 for alleged violation of consumer rights, misleading advertisement, and unfair trade practices.
The company is expected to file a reply to the CCPA within 15 days. The show-cause notice has no impact on financial, operational, or other activities of the company, said the company in a statement. Furthermore, the notice does not impose any penalties or financial fines.
The company began 2024 with a strong performance, selling 40,814 units in July. However, it subsequently experienced a decline in sales. In September, Ola’s month-on-month sales dropped by 10.6%, falling to 24,665 units from 27,589 units in August.
The shares of Ola Electric were trading at Rs 94.62, up by 4.8 percent at 3:05 PM on the BSE.