Ola announces its first manufacturing plant in Tamil Nadu, India, and will invest Rs 2.4k cr
Ola is setting up its first manufacturing facility in India. The MoU has been signed with Tamil Nadu government and entails an investment of Rs 2,400 crore. Upto completion, the project will have created about 10,000 jobs, and is stated to be the world’s largest scooter manufacturing facility. Initial annual production capacity is 2 million (20 lakh) units per year.
The Tamil Nadu plant will begin production with Ola’s Etergo AppScooter, which was acquired earlier. AppScooter features a removable battery that’s easy to port, and charge anywhere. Intelligent teach based smart features bring together a modern user experience for electric scooters. Once underway, Ola will introduce many new-age two wheeler product line-ups.
This could be a big step in helping the electric two wheeler market establish itself in a bigger way. Currently, the industry sees participation from tech companies, new companies, and tie-ups between new and traditional companies. Growth focus now sees a range of low speed, and high speed electric scooters, and 1 single electric motorcycle manufacturer.
Ola Electric growth path
Previously, Ola had announced plans to hire over 2,000 people as its electric mobility business grows. The focus is a global one that brings to the fire electric and smart urban mobility solutions. As plans are formalised, Ola has gone onto announce new personnel hiring to lead global ops. Last year, Ola Electric raised $250 million from Masayoshi Son’s SoftBank to take its valuation to more than $1 billion.
The move highlights reduction of India’s import dependence where electric vehicles are concerned. Considering India has major EV adaption plans, a large-scale project like Ola’s will help setup local supply chains, and manufacturing, along with tech knowhow. And since the plant will cater to markets in Europe, Asia and Latin America, laying down systems that work is essential for success.
Ola electric a global player
European electric two-wheeler market has seen growth in 2020. Furthermore, EV adaptation is encouraged through well planned government budgets wherein the government offers to pick up a substantial part of tab for small electric scooters, and cycles.
Ola is going to supply an electric two-wheeler order to New Zealand as the country is on path to introduce at least 64,000 new electric vehicles 2021 end. The nation has set serious carbon neutral goals 2025.
Bhavish Aggarwal, chairman and Group CEO, Ola said, “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. 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.”
