Ola Electric says will refund charger cost to its electric scooter buyers.
Ola Electric’s decision to reimburse charger costs follows a situation where the Indian government temporarily suspended subsidies provided to Ola. The reason for this was that Ola had found a way to bypass the conditions set for receiving those subsidies. The government had introduced the FAME II incentive scheme, which offered financial support for 1 million electric two-wheelers. Under this scheme, electric vehicle companies were allowed to provide a discount of up to 40% on locally manufactured vehicles and claim it as a subsidy from the government. This subsidy was intended to promote the adoption of affordable electric scooters priced below Rs. 1.5 lakh.
But Ola cleverly collected subsidies on scooters priced more than Rs. 1.5 lakh by pricing its scooters below Rs. 1.5 lakh, and charging customers separately for the chargers and software. It was thus able to claim subsidies on scooters which were sold for more than the amount prescribed by the government.
On May 4, Ola Electric announced that it will cover the expenses for chargers used by customers who purchase their electric scooters. The company mentioned that the electric vehicle industry has achieved remarkable progress in recent years, despite efforts from certain groups like raising concerns about the pricing of chargers, but Ola Electric aims to address this by reimbursing its buyers.
“As a leader of the industry we remain committed to putting our customers first. Therefore, setting aside the technicalities and as an example for others to follow, we have decided to reimburse the charger monies to all eligible customers,” it stated.
