Bengaluru-based Ola Electric and Bank Of Baroda today announced that they have signed a 10-year US$100 million debt financing agreement which will be used towards funding and financial closure of Phase 1 of Ola Futurefactory, Ola’s global manufacturing hub for its electric two-wheelers, the company said in a statement.
The four-year-old Ola Electric is setting up a 500-acre electric two-wheeler factory in Tamil Nadu’s Krishnagiri, aiming to make 10 million vehicles a year at full capacity, the company claimed. To support the development, Ola in December 2020 had announced a Rs 2,400 crore investment for setting up Phase 1 of the factory.
In late April 2021, the company had announced the launch of the world’s largest electric vehicle hypercharging network for its upcoming electric scooter. While the company is almost ready to launch its first electric two-wheeler scooter, Bhavish Agarwal recently tweeted a video hinting at features of the upcoming electric scooter.
Speaking on the development, Bhavish Aggarwal, Chairman & Group CEO, Ola, said:
“Today’s agreement for long-term debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world’s largest two-wheeler factory in record time. We are committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world and we are happy that Bank of Baroda has joined us in our journey.”
“The government has brought in several policies to incentivize make-in-India and to enable India to become a global EV leader. Ola is leading from the front and we are delighted to partner with them for their EV business. The Ola Futurefactory will put India on the global EV map and we are proud to be associated with them”, said Sanjiv Chadha, Managing Director & CEO, Bank of Baroda.
Besides Ola Electric, Ather Energy, Hero Electric, Okinawa Scooters, and Ampere Vehicles are also developing electric two-wheeler vehicles.
According to the company, the first phase of Ola Futurefactory is near completion, with the production trials of the much-awaited Ola Scooter expected to be started soon. The upcoming scooter will be manufactured at the Ola Futurefactory, which will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers, the company added.