Ola S1 Pro owners to get charger reimbursement: Here's why
What's the story
Bought an EV charger separately while purchasing an Ola Electric scooter in India? You are entitled to a refund.
Following an investigation initiated by the Union Ministry of Heavy Industries over allegations of overpricing, Ola Electric has decided to return Rs. 130 crore to customers.
To note, Ola S1 Pro buyers spent around Rs. 9,000-19,000 to buy an "off-board charger" as an additional accessory.
Reason
What's the reason behind the refund?
Under the FAME II scheme, electric two-wheelers that retail below Rs. 1.5 lakh per unit, are eligible for a subsidy from the Centre.
Prior to the ministry's probe, the company was selling the charger as an add-on device (not including its price in the scooter's cost).
Thus, the firm was charging customers over and above the subsidy threshold and the government took objection.
Response
How did the government respond?
Once the probe commenced, subsidies to the tune of Rs. 500 crore to Ola Electric were stopped. Now, with the closure of the investigation, the pending subsidy dues will be released to the firm.
On its part, Ola Electric will refund money to nearly one lakh buyers who purchased the charger as an accessory while buying an S1 Pro model till March 30, 2023.
Details
A brief look at the FAME II scheme
FAME II is a three-year Rs. 10,000 crore subsidy program. Under the scheme, the Centre offers financial incentives to over 10 lakh electric two-wheelers in the country.
The policy allows EV makers to offer a discount of up to 40% on the cost of the vehicles manufactured locally. They can later claim it as a subsidy from the government.
Information
Ola Electric wants to create goodwill now
To create goodwill, Ola Electric recently reduced the price of the S1 Pro from Rs. 1.39 lakh to Rs. 1.25 lakh (ex-showroom). This is inclusive of charger/software features costs. The brand will also submit a statement to ARAI when customers are reimbursed for the charger.
Malpractice
Other EV makers are overcharging too
While Ola Electric has decided to refund the money for chargers to customers, it is not the only erring party.
Ather Energy, Hero MotoCorp, and TVS Motor Company are also charging buyers over the Rs. 1.5 lakh mark in the name of off-board chargers and extra software features.
These firms too are under the ministry's lens and punitive action will likely be taken.