Ola Electric Confirms It Will Reimburse Charger Costs To Customers After FAME-II Controversy

This announcement comes after complaints about prominent electric two-wheeler (E2W) manufacturers selling chargers at extra cost prompted a response from the heavy industries ministry.

By Sidharth Nambiar


Published on May 4, 2023

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  • Ola Electric was named in a string of whistle-blower emails to the heavy industries ministry.
  • All manufacturers including Ola were reportedly handed a notice by the ministry.
  • Ola Electric recorded a growth in sales in April when the overall E2W market slowed down.

After being named in the FAME-II controversy alongside other prominent electric two-wheelers (E2W) manufacturers, Ola Electric has finally released a statement on the matter. The manufacturer said in its statement that it would reimburse all its existing customers who paid an additional amount for the charger when purchasing an Ola scooter.

‘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. This move will not only demonstrate our commitment to the EV revolution but also serves to strengthen trust and add more value for our customers. We extend our sincere gratitude to the government, especially MHI, for their progressive approach and policies towards the EV industry, including FAME, PLI-AAT, and PLI-ACC’, read a media statement from the start-up.


Also Read: Electric 2-Wheeler Manufacturers To Refund Customers For Home/On-Board Chargers


Ola Electric was named alongside Hero MotoCorp, TVS Motor Company and Ather Energy in a series of whistle-blower emails highlighting they were all selling the charger as a separate accessory from the two-wheeler and asking customers to pay an extra fee for it. This was done to meet the Rs 1.50 lakh ex-factory price limit, failing which they wouldn’t be eligible for subsidies under the FAME-II scheme. 

Sources told carandbike that all the manufacturers were handed a notice by the heavy industries ministry following which, they sprung into action and decided to reimburse customers the extra charge they paid. The total amount to be reimbursed by Ola Electric reportedly stands at Rs. 130 crore. Hero MotoCorp and TVS have also announced they will refund existing customers, while an official statement from Ather Energy is awaited.


Also Read: Electric Two-Wheeler Sales In April 2023: Overall Sales Dip Sharply, But Ola Sales Soar


Ola Electric had surprisingly solid sales in April 2023 after subsidy misappropriation allegations caused uncertainty in the market, leading to a 23 per cent dip in two-wheeler EV registrations. Its sales numbers in the month stood at 21,882 units, accounting for one-third of all electric two-wheelers sold in the month. 



Last Updated on May 4, 2023

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