Ola Electric customers: Ola Electric says it will reimburse charger amount to all eligible customers

Electric vehicle maker Ola Electric said that it will reimburse the amount collected from customers for chargers. The decision comes after Ola came under government scrutiny following a whistleblower complaint that multiple companies have mispriced vehicles to claim the FAME-II subsidy.

“Setting aside the technicalities and as an example for others to follow, we have decided to reimburse the charger monies to all eligible customers,” Ola Electric said in a statement on Thursday morning.

It also said that the issue related to charger pricing is a “narrative” built by vested interest groups.

“The EV industry has witnessed unprecedented success in the last couple of years, despite attempts from vested interest groups, like the recent narrative on charger pricing,” it said.

Following Ola’s decision to refund, all four companies are expected to refund the amount to the customers. Ola and Ather will be hit the most since they have sold the most vehicles.

ET reported on May 2 that the government has closed the probe against Ola Electric and that it will refund Rs 130 crore to 1 lakh customers for EV chargers sold separately with the electric scooters.

Companies maintain that they are legally on the safe side. ET reported on March 13 that the senior executives of four companies– Ola Electric, Ather Energy, TVS Motors, and Hero MotorCorp- met government officials from the Ministry of Heavy Industries on multiple occasions to explain the technicalities of their pricing.All companies bill the charger and software separately from the vehicle so as to keep the ex-factory price of the vehicle below Rs 1,50,000, thereby complying with the FAME-II norms. Companies argued that the charger is not an integral part of the vehicle, it is not homologated along with the vehicle, and customers can choose to use public charging stations. The software was also being considered an add-on accessory and hence billed separately.

Not just these four, but multiple companies like Hero Electric, and Okinawa among others have come under the government scanner for not adhering to the localisation norms.

The Indian government 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. Some of the companies have been accused of passing off vehicles made with imported components as locally made.

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