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By Parikshit Luthra Mar 16, 2023 11:00:01 AM IST (Updated)
While Ola has not officially announced a recall but the company has said it is looking to address concerns of customers and complaints raised on social media by offering to replace the front fork for people who may have doubts.
A day after Ola Electric offered to replace the front fork arm of the S1 and S1 Pro scooter free of cost, the company defended the move. "There is no design safety fault, it's an upgrade. We have upgraded the safety margin of the scooter", said company's CFO Arun Kumar.
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While Ola has not officially announced a recall, but the company has said it is looking to address concerns of customers and complaints raised on social media by offering to replace the front fork for any customer who may have doubts. Arun Kumar and Ola Electric board member BVR Subbu spoke exclusively to CNBC-TV18.
The Ministry of Road Transport & Highways has regulations on vehicle recall in case of defects and the Society of Manufacturers of Electric Vehicles also has a code on voluntary recall. It is not clear why Ola Electric has not called this a recall or informed the government and SIAM.
All companies have to inform the government in case of any defect in the vehicle and also mention the batch of vehicles impacted. In this case Ola's communication to customers says that the concerns and complaints about the front fork are unfounded but at the same time the company has offered a free upgrade to the new fork arm with enhanced strength and durability.
Automotive industry veteran and Ola Electric Board Member BVR Subbu said that there was no need for the company to order a recall as the number of complaints were less than the three-digit mark.
"The number of failures was too small to qualify as a recall. We discussed in the board whether this qualifies as a recall. The board looked at the question on what should be done. Those who want peace of mind can come and get it changed", said Subbu.
Sources have told CNBC-TV18 that three months ago the government had asked Ola to reply to complaints about the structural safety of the Ola scooter and carry out an investigation into the complaints and accidents.
They added that the Ministry of Road Transport & Highways will now seek details from Ola Electric on the voluntary recall. Ola CFO Arun Kumar denied that any explanation was sought by the government over complaints regarding vehicle safety.
While Ola has defended its scooter's safety, they have also offered to replace the front fork for all its two lakh customers due to complaints and concerns on social media. If the company goes ahead and replaces the front fork arm for all two lakh customers, this will make it one of the biggest recalls in recent times.
Subbu said that the board of directors has confidence in the company's approach towards customer safety and that a perception has been created against the company on social media. He added that the company's communication for fork replacement may have caused confusion and could have been worded differently.
(Edited by : Sangam Singh)
First Published: Mar 16, 2023 7:18 AM IST
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