Ola To Invest Rs 2,400 Crore To Build EV Manufacturing Plant In Tamil Nadu

• Ola will invest Rs 2,400 crore to build an electric two-wheeler plant in Tamil Nadu.
• The company claims to set up the biggest EV manufacturing plant in the Indian state of Tamil Nadu.
• The investment would employ around 10,000 people and would have an initial production capacity of 2 million vehicles annually.

As part of the electric mobility plan, Softbank-backed unicorn Ola, on Monday, said it will invest Rs 2,400 crore (or about $326 million) to build the biggest electric two-wheeler manufacturing plant in Tamil Nadu.

The development would help Ola to power its new business segment that aims to sell green vehicle technologies in India and the global market.

The investment would employ around 10,000 people and would have an initial production capacity of 2 million units annually, the company said.

Ola has signed the Memorandum of Understanding (MoU) with the Tamil Nadu government to set up a factory with an initial annual capacity of 2 million units. 

Commenting on the development, Bhavish Aggarwal, Chairman and Group CEO, Ola, said, "This is a significant milestone for us and a proud moment for our country as we rapidly progress towards realizing our vision of moving the world to sustainable mobility solutions across shared and owned mobility."

"This will be one of the most advanced manufacturing facilities in the world. This factory will showcase India’s skill and talent to produce world-class products that will cater to global markets," he added.

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From the last few years, Ola has been significantly shifting its focus to electric vehicles manufacturer. In 2017, It introduced Ola Electric, which aims to place 10,000 e-rickshaws in service over the next 12 months. The company believes that electrification can improve the outcome for the Ola drivers, customers, and business model.

In May 2020, Ola Electric acquired Amsterdam-based electric scooter manufacturer Etergo BV to launch premium electric scooters in the country. Last month, A sources told PTI that Ola could soon launch its first electric vehicle in January next year.

Ola Electric will also cater to markets in Europe, Asia, and Latin America, among other international markets. It will start the production process in the next 18-24 months and aims to sell around 1 million units in its first year, the company said.

The company is also envisaged to be state-of-the-art, use solar energy, and have zero-liquid discharge in manufacturing, the company added.

Earlier this week, Ola announced its electric scooters range for New Zealand, supporting the move by the New Zealand government to have 64,000 electric vehicles by the end of 2021.

Ola Electric, which is now a unicorn company, is funded by prominent investors such as Matrix Partners India, Tiger Global Management, Hyundai Motor Company, Kia Motors, and others.

Currently, Ola Electric competes with Bajaj Auto, Ather Energy, Hero Electric, TVS Motors, Okinawa Scooters, Tork Motors, and others that are currently working in the electric two-wheeler segment.

A report by BIS Research estimates that the EV market will grow at a robust CAGR of 43.13% during the forecast period from 2019 to 2030.

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