Ola to Invest INR. 2,400 Crore for ‘World’s Largest’ e-Scooter Factory

Ola said it agreed to invest Rs. 2,400 crore (US$ 325.47 million) to set up an electric scooter factory in Tamil Nadu, adding that it would be the largest in the world.

The firm expects to make India an electric vehicle manufacturing centre. A memorandum of understanding for this facility with the Tamil Nadu government has been signed by Ola. The factory would produce nearly 10,000 jobs upon completion. It will be the largest scooter production facility in the world and will potentially have a total annual capacity of 2 million units.

Mr. Bhavish Aggarwal, chairman and group CEO, Ola said, “We are delighted to announce our plans to set up the biggest scooter factory in the world. This is a big achievement for Ola and a proud moment for our country as we are increasingly advancing towards realising our vision of moving the world through shared and owned connectivity towards sustainable mobility solutions.”

He further said, “This will be one of the world’s largest most modern production facilities. This plant will highlight the potential and talent of India to manufacture world-class goods to cater to global markets.”

The step placed the company based in Bengaluru in competing directly with electric two-wheeler manufacturers such as Ather Energy, Hero Electric and TVS Motor Company.

The company said that Ola’s factory is a significant step in building Aatmanirbhar ‘Bharat, in line with the vision of Prime Minister Mr. Narendra Modi. In a key future market, such as electric vehicles, it will help facilitate the reductions of India’s import dependence, boost local manufacturing, create employment and develop the country’s technological expertise.

The factory will also stimulate the ecosystem of India’s electric vehicle (EV) and develop India as a key player in the production space of the EV. Ola claims that India is well positioned to be an international center for the cutting-edge development of EVs with its unique expertise, manpower and demography.

Ola’s factory would cater to clients in India, and also markets around the world, including Europe, Asia and Latin America.

Commencing with Ola’s electric scooter, which has already received many prominent design and innovation awards around the globe, including the Marketing Innovation Award at CES and the German Design Award, the factory will manufacture Ola’s upcoming range of two-wheeler products. It has many firsts, including a seamless interface, a unique, easy-to-carry removable banana battery that can be charged anywhere.

Ola announced plans to employ more than 2,000 employees for its energy sector this year as it is quickly developing a portfolio of electric and smart urban mobility solutions for customers worldwide. The company recently roped in Mr. Jose Pinheiro, General Motor Veteran, to head its global development and operations.

Earlier, Ola Electric had also appointed veterans of the automotive industry such as Mr. BVR Subbu and Mr. Jaime Ardila to its board, bringing their deep industry expertise and experience of global mobility.

According to a report by Allied Market Research, the global electric vehicle industry accumulated US$ 162.34 billion in 2019 and is expected to reach US$ 802.81 billion by 2027, growing at a CAGR of 22.6% from 2020 to 2027.

Source: IBEF