Ola Electric to Reimburse Rs 130 Crore to S1 Pro Electric Scooter Buyers, Check Details

Ola Electric will be reimbursing the extra amount charged to customers on the purchase of an off-board charger as an accessory with the brand’s electric scooters. The electric scooter manufacturer will reimburse Rs 130 crore in total to nearly 1 lakh customers who had purchased its flagship Ola S1 Pro electric scooters as of March 30, 2023. The company took this decision due to a probe initiated by the Ministry of Heavy Industries on complaints of overpricing.

The central government offers financial support on 10 lakh electric two-wheelers under its FAME II incentive scheme. Under this scheme, electric vehicle companies like Ola Electric, Ather Energy and TVS Motor offer a discount of up to 40 per cent on the cost of locally manufactured vehicles and claim it as a subsidy from the government. Electric two-wheelers that retail below Rs 1.50 lakh per unit are eligible for centre’s Rs 10,000 crore subsidy programme.

A CNBC-TV18 report has quoted a government official on the whole matter. “The Automotive Research Association of India (ARAI) will not take any further action against Ola Electric, as the company announced in its letter to ARAI dated April 30, 2023, that they will reimburse the price (approximately Rs 130 crore) of the off-board charger to all customers, who have bought the charger as an accessory when purchasing an Ola S1Pro model scooter from FY 2019-20 until March 30, 2023,” the official was quoted as saying.

However, the government had paused the release of subsidies worth Rs 500 crore to electric vehicle makers, including Ola, after reports of irregularities in their application under the FAME scheme. The government had found that some companies billed chargers separately in order to meet the eligibility threshold required for the subsidy.

Also Read: Ola Electric Sells 30,000+ Units in April 2023, Grabs 40 Percent EV Market Share

It is worth noting that the central government had approved Rs 10,000 crore for the Phase II of the FAME Scheme for a period of three years commencing from April 1, 2019. This scheme is aimed to boost EV demand across the country.

Meanwhile, Ola Electric had recently expanded its India portfolio by launching the S1 Air electric scooter. While the base variant of Ola S1 Air is priced at Rs. 84,999, the top-spec model is priced at Rs. 1.09 lakh (all prices ex-showroom).

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