Ola Electric‘s share price was in the red on Thursday morning going down over 3% to hit an intraday low of ₹92.69.

What Happened: This comes as the Ministry of Heavy Industries has launched an investigation into service-related complaints against the EV giant.

The ministry has initiated the probe following a show cause notice issued to Ola Electric on October 3, 2024, over allegations of consumer rights violations, misleading advertisements, and unfair trade practices. Inputs have also been sought from the Automotive Research Association of India (ARAI).

The allegations raise concerns about Ola Electric’s compliance with regulations under the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) and the PM E-DRIVE scheme.

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These schemes require all Original Equipment Manufacturers (OEMs), including Ola Electric, to establish service centers for effective customer issue resolution and provide warranties for consumer protection and satisfaction.

Earlier this week, Ola Electric founder Bhavish Aggarwal found himself in a public confrontation with comedian Kunal Kamra over the service issues. Kamra had shared images of poorly maintained Ola two-wheelers on social media, encouraging dissatisfied customers to voice their grievances.

The exchange quickly escalated, with both sides airing their views publicly, drawing significant attention to the state of Ola Electric’s customer service and product quality. The spat has sparked widespread conversation about the company’s after-sales service and responsiveness to customer complaints.

Ola Electric’s share price has been under pressure, with a decline of around 20% in the last 30 days due to falling sales and increasing service complaints.

Price Action: Ola Electric’s share price was down 3.06% to trade at ₹92.85 shortly after market open on Thursday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.