Ola Electric to refund Rs 130 crore to 1 lakh customers for EV charger sold separately with scooters

The government has closed the probe against Ola Electric in a case related to the mispricing of its electric two-wheelers after the company agreed to reimburse to buyers the cost of chargers sold separately with scooters, officials said.

A senior government official told ET that the company will reimburse about Rs 130 crore to nearly 1 lakh customers who had purchased Ola S1 Pro electric scooters as of March 30, 2023.

"The investigation against Ola Electric has closed and the due amount will be released," a second government official said.


Ola declined to respond to the queries sent by ET.

The Centre offers financial support for 10 lakh electric two-wheelers under the FAME II incentive scheme. Electric vehicle companies can offer a discount of up to 40% on the cost of locally manufactured vehicles and claim it as a subsidy from the government.

The Rs 10,000 crore subsidy programme is available only to electric two-wheelers that retail below Rs 1.50 lakh per unit.

Some manufacturers billed chargers and proprietary software separately to customers to price the vehicles below the eligibility threshold required for the subsidy, prompting an investigation by the Ministry of Heavy Industries (MHI).

The ministry subsequently paused the release of subsidy to electric vehicle makers including Ola pending investigation.

Ola, however, continued to sell its electric scooters at the subsidised price leading to a build-up of subsidy dues to the tune of Rs 500 crore. The government will release the pending subsidy dues with the closure of the probe.