One of the world’s leading mobility platforms, Ola, signed a Memorandum of Understanding (MoU) with the Tamil Nadu government to create a manufacturing hub for electric vehicles (EV) and set up its first factory in the state with an investment of ₹24 billion (~$326 million).
The new factory aims to catalyze India’s import dependence in a key future sector like EV, boost local manufacturing, create jobs, and improve the country’s technical expertise. According to Ola, the new factory will create around 10,000 jobs and will become the world’s largest electric scooter manufacturing facility, with an initial annual capacity of 2 million units. Earlier this year, Ola announced plans to hire over 2,000 people for its electric mobility business as it rapidly builds a suite of electric and smart urban mobility solutions for consumers worldwide.
Ola is one of India’s largest mobility platforms and serves 250+ cities across India, Australia, New Zealand, and the U.K., including key global markets like London and Sydney. The company recently roped in General Motor Veteran Jose Pinheiro to head its global manufacturing and operations.
The factory will also galvanize India’s EV ecosystem while establishing the country as a key player in the EV manufacturing space. The factory will produce Ola’s upcoming range of two-wheeler products starting with Ola’s electric scooter.
Ola’s factory will cater to customers in India and markets worldwide, including Europe, Asia, Latin America, and more. The company is gearing up to launch its range of highly anticipated electric scooters in the coming months.
Bhavish Aggarwal, Chairman and Group CEO, Ola, said, “We are excited to announce our plans to set up the world’s largest scooter factory. It 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.”
Ola Electric recently acquired Etergo BV, an Amsterdam-based electric scooter maker. In 2019, the company said it raised ₹17.25 billion (~$250 million) from Tokyo-based SoftBank. SoftBank’s Caymans Islands entity, SB Topaz (Cayman) Ltd, was allotted 4,326 compulsorily convertible preference shares in Ola Electric Mobility at a premium rate of ₹3.99 million (~$52,980).
Last year, Ather Energy had also signed a memorandum of understanding with the government of Tamil Nadu to set up a two-wheeled electric vehicle and lithium-ion battery manufacturing facility. The 400,000 square feet factory will be located at Hosur.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.