Ola plans to invest Rs 2,400 crore for setting up electric scooter factory in Tamil Nadu

Taxi-hailing company Ola said on Monday it plans to invest Rs 2,400 crore to set up a factory for manufacturing electric scooters in Tamil Nadu.The company claimed this would be the world’s largest such factory.

The factory will also galvanise India’s electric vehicle (EV) ecosystem and establish India as a key player in the EV manufacturing space. Ola believes that India with its unique skill-sets, manpower and demography is well placed to be a global hub for the cutting edge manufacturing of EVs.

Ride-hailing major Ola said on Monday that it will make an investment of Rs 2,400 crore for setting up the “world’s largest” scooter factory in Tamil Nadu.

The Bengaluru-headquartered company said it signed a memorandum of understanding (MoU) with the Tamil Nadu government for setting up the factory which is in line with the firm’s aim to make India a manufacturing hub for electric vehicles. The factory will cater to customers not only in India but in markets around the world including Europe, Asia and Latin America.

“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,” Bhavish Aggarwal, Chairman and Group CEO, Ola, said in a statement.

The factory will produce Ola’s upcoming range of two-wheeler products starting with Ola’s electric scooter.

Ola said that it features a beautiful and seamless design, removable banana battery that is easy to carry and can be charged anywhere.

Upon completion, the factory will create almost 10,000 jobs and will be the world’s largest scooter manufacturing facility, which will initially have an annual capacity of two million units, Ola said.

The announcement comes as the company is gearing up to launch the first of its range of electric scooters in the coming months.

The factory will produce Ola’s upcoming range of two-wheeler products starting with Ola’s electric scooter.

Ola said that it features a beautiful and seamless design, removable banana battery that is easy to carry and can be charged anywhere as well as “intelligent” software designed to elevates the consumer experience of owning a scooter.

Earlier this year Ola announced plans to hire over 2,000 people for its electric business as it builds a suite of electric and smart urban mobility solutions for consumers around the world.

Recently, the company also roped in General Motors veteran Jose Pinheiro to head its global manufacturing and operations.

Early this year, Ola Electric Mobility (Ola Electric), the ride-hailing firm’s electric vehicle arm, acquired Etergo BV, an Amsterdam-based electric scooter original equipment manufacturer.

This year Ola revealed 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.

The firm recently appointed mobility industry executive Julien Geffard as the director of the go-to-market strategy for its electric business in Europe. The two-wheeler EV market in Europe has seen double-digit growth in 2020, with customers looking for differentiated products that are stylish, smart and lightweight, and available at competitive prices.

Ola will also bring its electric two-wheeler range of products to New Zealand. It would help support the New Zealand government’s goal of on-roading 64,000 new electric vehicles by the end of 2021, while also helping the public sector become carbon neutral by 2025.

Last year Ola Electric raised $250 million from Japan's SoftBank. The investment made the company a “unicorn”, or a start-up valued at more than $1 billion..