On October 7, Ola Electric, a leading electric two-wheeler manufacturer, received a show-cause notice from the Central Consumer Protection Authority (CCPA) for alleged violations related to consumer rights. This notice raises concerns regarding misleading advertisements and unfair trade practices.
Key Details of the Notice
- Response Timeline: Ola Electric is expected to respond to the CCPA within 15 days of receiving the notice.
- Impact on Operations: According to the company’s statement, the show-cause notice does not affect its financial, operational, or other business activities.
- No Penalties Imposed: The notice does not include any penalties or financial fines against the company.
Sales Performance Overview
Ola Electric began 2024 with impressive sales, selling 40,814 units in July. However, the company has faced challenges in subsequent months:
- Sales Decline: In September, Ola Electric reported a month-on-month sales decline of 10.6%, with sales dropping from 27,589 units in August to 24,665 units in September.
Stock Market Update
As of 3:05 PM on the BSE, Ola Electric’s shares were trading at Rs 94.62, reflecting an increase of 4.8%.
Multiple-Choice Questions (MCQs):
- What did the Central Consumer Protection Authority (CCPA) issue to Ola Electric on October 7?
- A) A financial fine
- B) A show-cause notice
- C) A sales report
- D) An operational warning
Answer: B) A show-cause notice
- How long does Ola Electric have to respond to the CCPA notice?
- A) 7 days
- B) 15 days
- C) 30 days
- D) No response required
Answer: B) 15 days
- What was Ola Electric’s sales figure in September?
- A) 27,589 units
- B) 40,814 units
- C) 24,665 units
- D) 30,000 units
Answer: C) 24,665 units
- What was the percentage increase in Ola Electric’s shares at 3:05 PM on the BSE?
- A) 2.5%
- B) 4.8%
- C) 6.1%
- D) 10%
Answer: B) 4.8%
- What was the percentage decline in Ola Electric’s sales from August to September?
- A) 5.4%
- B) 8.2%
- C) 10.6%
- D) 12.3%
Answer: C) 10.6%