Ola to Invest Rs 2,400 Crore in Tamil Nadu, Will Set Up Largest Electric Scooter Factory
Ride-hailing platform Ola on Monday said it has inked an agreement with the Tamil Nadu government to invest Rs 2,400 crore for setting up its first electric scooter factory in the state. Upon completion, the factory will create nearly 10,000 jobs and will be the world’s largest scooter manufacturing facility that will initially have an annual capacity of 2 million units, a statement said.
“In line with Prime Minister Narendra Modi’s vision, Ola’s factory is an important step in making an Atmanirbhar Bharat. It will catalyse reduction of India’s import dependence in a key future sector like electric vehicles, boost local manufacturing, create jobs as well as improve the technical expertise in the country,” it added. Ola said India with its unique skill-sets, manpower and demography, is well placed to be a global hub for cutting edge manufacturing of electric vehicle (EVs).
Ola’s factory will cater to customers not only in India but in markets around the world including Europe, Asia, Latin America and others, the statement said. The company is gearing up to launch the first of its range of electric scooters in the coming months. The new manufacturing plant – expected to be operational in a year’s time – aligns with Ola’s global vision to move mobility into a more sustainable, accessible and connected future.
Earlier this month, Ola had said it will launch its electric two-wheeler range in New Zealand to help support the New Zealand government’s goal of bringing on road 64,000 new electric vehicles by the end of 2021, while also helping the public sector become carbon neutral by 2025. “We are excited to announce our plans to set up the world’s largest scooter factory. This is a significant milestone for Ola and a proud moment for our country as we rapidly progress towards realising our vision of moving the world to sustainable mobility solutions across shared and owned mobility,” Ola Chairman and Group CEO Bhavish Aggarwal said.
He added that this factory 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 said.
Earlier this year, SoftBank-backed Ola had announced plans to hire over 2,000 people for its electric business as it rapidly builds a suite of electric and smart urban mobility solutions for consumers around the world. Recently, the company roped in General Motor Veteran Jose Pinheiro to head its global manufacturing and operations for its electric business.
Ola Electric – the EV arm of Ola – has raised about USD 400 million in funding from Tiger Global, Matrix India, Tata Sons Chairman Emeritus Ratan Tata and others.