Ola Electric Mobility Ltd. has issued a clarification on a regulatory scrutiny into the pricing of its most affordable scooter.
The largest electric two-wheeler maker in India isn't discounting the price of Ola S1 X 2 kWh scooter under the ex-factory price at which subsidy was availed, according to an exchange filing on Tuesday. Instead, it is running a limited festive campaign that includes a discount of Rs 5,000 for every customer and Rs 25,000 on limited inventory of the S1 X 2 kWh model.
On Oct. 8, the government's Automotive Research Association of India shot off an email to Ola Electric, seeking an explanation on how the company was retailing the Ola S1 X 2 kWh at Rs 49,999 after stating an ex-factory price of Rs 75,001 to avail Rs 10,000 subsidy.
The change in pricing would have an impact on subsidy eligibility of the model, ARAI said in an email to Ola Electric.
“As per operational guidelines of EMPS-2024 and PM E-Drive scheme, an OEM is required to inform change(s) in ex-factory price of the EV model, if any, subsequent to eligibility approval. In this particular case, Ola [Electric] has not informed ARAI about this change in price of model Ola S1 X 2 kWh.”
On Tuesday, Ola Electric said it had responded to the notice, but had not received any communication from the ARAI in this regard.
“Additionally, as part of our response, we have enclosed (A) an invoice raised on October 6, 2024, which evidenced the fact that a discount of Rs 5,000 was given to customers; and (B) a screenshot of the app where it is specifically mentioned that we have not changed the price of Ola S1 X 2KWh and the discount of Rs 25,000 was extended only for very limited inventory,” the company stated.
Additionally, on Oct. 9, ARAI had requested the latest customer invoice which was provided by the company on the same day, the company said.
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