A Hyderabad-based business has secured a total payout of Rs 24.63 lakh from an authorized automobile dealer following persistent mechanical and electrical failures in a premium electric SUV purchased in August 2025. The vehicle, acquired for Rs 27.98 lakh, suffered repeated starting failures, smart-key malfunctions, and central-locking system errors within days of delivery, prompting multiple service visits and leaving the occupants stranded mid-way during daily commutes.
The Hyderabad District Consumer Disputes Redressal Commission-I, presided over by President B Uma Venkata Subba Lakshmi alongside members C Lakshmi Prasanna and B Raji Reddy, issued the ruling on September 7, 2026. The forum held that the dealer delivered a defective vehicle and exhibited a clear deficiency in service, directing a refund after factoring in a 10 per cent depreciation along with compensation and legal costs.
Unresolved Key Fob and Central Locking Failures
The dispute originated from an escalating series of vehicle failures that began almost immediately after the business took delivery of the electric SUV on August 1, 2025. According to the consumer complaint, the vehicle repeatedly failed to recognize the smart key, which frequently went out of range, while the central-locking system malfunctioned on four separate occasions within the first month alone.
The complainant noted that the automobile even stopped midway through traffic during commutes. Although a supervisor was deputed after one such breakdown, the user stated that the underlying faults were never permanently resolved, ultimately forcing the company to demand a complete vehicle replacement rather than temporary patches.
Dealer Defense and Service History Records
The authorized dealer contested the claims by arguing that the complainant failed to produce an official expert opinion, automobile engineer report, or laboratory analysis to substantiate any manufacturing defect. Furthermore, the dealership maintained it was merely an authorized service center and that the primary vehicle manufacturer had not been formally joined as a party to the consumer complaint.
Despite these arguments, official documentation undermined the defense. The Hyderabad consumer commission pointed out that service records and job cards submitted by both parties explicitly established that the smart-key out-of-range issues and central-locking malfunctions persisted long after the complaint was formally filed, with multiple entries explicitly labeling the troubles as old issues.
Software Glitches and Escalating Service Logs
During initial inspection stages, the dealership attributed the starting failures to a software glitch, assuring the buyer that the vehicle was fully operational after performing updates. Warrantied components associated with the locking mechanism were also replaced during routine servicing appointments, though these interventions failed to secure long-term reliability.
Service logs provided a chronological trail of the recurring mechanical distress. A job card dated August 1, 2025, recorded problems with locking and an old starting glitch, while records from September 5 referenced inspections of key fobs and near-field communication cards. Subsequent service histories from December 25, 2025, and February 23, 2026, continued to log locking failures, drive-mode malfunctions, and interior lighting dropouts.
Financial Adjudication and Final Commission Order
The complainant had initially pressed for a total reimbursement of Rs 29,29,395, alongside demands for Rs 10 lakh in compensation for mental agony and harassment, plus an additional Rs 10 lakh in punitive damages. The district consumer forum rejected the sweeping claims for heavy punitive and harassment compensation.
Instead, the bench ordered a balanced financial remedy. The dealer was instructed to refund the vehicle purchase price calculated from a baseline of Rs 26,64,761.90 after deducting a 10 per cent depreciation fee. To this principal refund, the forum added Rs 50,000 as compensation for deficiency in service and Rs 15,000 toward litigation costs, bringing the final mandatory payout to Rs 24.63 lakh.
Aggrieved consumers navigating persistent vehicle defects are advised to preserve all job cards, email exchanges, service histories, and official complaint communications. Individuals seeking formal assistance can contact their respective state consumer helplines or reach out to the National Consumer Helpline at 1915.
