Ola is also in the process of setting up a plant in Krishnagiri in Tamil Nadu with capacity of 10 million e-scooters per annum
As petrol and diesel prices rise, the two and three wheeler electric segment has noted unprecedented increase in demand. The e-scooter segment has been noting increased demand each year. From a total of 1,26,000 units in 2018-19 sales increased to 1,52,000 electric two-wheelers in 2019-20.
This fiscal year, sales have not been upto the mark in view of the current pandemic situation but yet managed to reach a total of 1,43,821 electric two-wheelers, as per figures indicated by Society of Manufacturers of Electric Vehicles.
The amendments to the FAME-II electric vehicle policy rolled out on Friday favors the segment in a big way and is expected to draw in more buyers into the fray. Electric scooter makers Ola, joins the likes of Hero Electric, Mahindra Electric Mobility and Kinetic Green Energy and Power Solutions, all of who are also in talks with Convergence Energy Services Ltd (CESL) for the supply of electric two and three wheelers along with charging infrastructure.
As per the latest amendments in the FAME-II policy, demand incentive has been increased to Rs 15,000 per kWh from an earlier Rs 10,000 per kWh for electric two wheelers. The cap on incentives has been raised to 40 percent of the cost of the vehicle which had earlier stood at 20 percent.
The Government of India had introduced the FAME-II Scheme in 2019. Eligibility for this criteria to avail of the subsidy stood at a minimum range of 80 km and top speed of 40 km/h for an electric two wheeler. The new amendment also offers subsidy for battery-powered two-wheelers that comply with this criteria.
Ola Factory in Tamil Nadu
The ongoing pandemic has not deterred Ola from continuing with the setting up of its new factory which is slated to be across a 500 acre of land in Krishnagiri, Tamil Nadu. It is being built at an estimated cost of Rs 2,400 crore, with a target of 15 percent of the world’s production, or 1 crore e-scooters per annum. The plant is scheduled to be completed by the middle of 2022.
CESL also plans to supply 2 lakh electric two-wheelers and 3 lakh electric three-wheelers and an agreement to this effect has already been signed with the Governments of Goa and Kerala for the supply of 30,000 units. Where charging infrastructure is concerned, Ola Electric also targets a network of 1 lakh EV chargers across 400 cities out of which 5,000 points will be set up in 100 cities during the current financial year itself.
In view of these ongoing developments, Ola Electric has also strengthened its leadership team with appointment of two new Chief Financial Officers. GR Arun Kumar will be the new CFO of Ola Group and Ola Electric while Swayam Saurabh will be in-charge of the company’s mobility, financial services and food businesses.