Ola, a ride-sharing company, said on Monday that it planned to invest 2.4 billion rupees to establish an electronic scooter factory in Tamil Nadu, adding that it would be the largest in the world.
The SoftBank-backed company aims to make India an electric vehicle manufacturing hub. Ola has signed a memorandum of understanding with the government of Tamil Nadu for this facility. Upon completion, the factory will create nearly 10,000 jobs. It will be the largest scooter manufacturing facility in the world, initially having an annual capacity of 2 million units.
“We are excited to announce our plans to establish the largest scooter factory in the world. This is an important milestone for Ola and a proud moment for our country as we move rapidly towards realizing our vision of moving the world towards sustainable mobility solutions through proprietary mobility, “said Bhavish Aggarwal, group president and CEO, Ola.” This will be one of the most advanced manufacturing facilities in the world. This factory will showcase India’s skill and talent for produce world-class products that will serve global markets, “he said.
The move has put the Bengaluru-based firm in direct competition with manufacturers of electric two-wheelers such as Ather Energy, Hero Electric and TVS Motor Company.
The company said that according to Prime Minister Narendra Modi’s vision, the Ola factory is an important step in making an ‘atmanirbhar’ Bharat. It will catalyze India’s reduction of dependence on imports in a key future sector such as electric vehicles, boost local manufacturing, create jobs and enhance technical expertise in the country.
The factory will also galvanize 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 skills, workforce and demographics, is well positioned to be a global hub for cutting-edge EV manufacturing.
The Ola factory will serve customers not only in India, but in markets around the world, including Europe, Asia and Latin America. The company is preparing to launch the first of its highly anticipated range of electric scooters in the coming months.
The new manufacturing facility is in line with Ola’s global vision of moving mobility towards a more sustainable, accessible and connected future.
The factory will produce Ola’s next range of products for two-wheelers, starting with Ola’s electric scooter, which has already won several prestigious design and innovation awards around the world, including the award for marketing innovation at CES. and the German design award. It features many new features, including a seamless design, a unique removable banana battery that is easy to carry and can be charged anywhere. It is also equipped with smart software that elevates the entire consumer experience of owning a scooter. Ola plans to bring many of these design and software innovations to its entire two-wheeler product line as they come to market in the coming months.
Earlier this year, Ola Electric Mobility (Ola Electric), the electric vehicle arm of the transportation company, acquired Etergo BV, an Amsterdam-based original equipment manufacturer of electric scooters.
This year, Ola revealed plans to hire more than 2,000 people for its electricity business as it rapidly builds a suite of electric and smart urban mobility solutions for consumers around the world. The company recently hired General Motor veteran José Pinheiro to lead its global manufacturing and operations.
The firm recently appointed mobility industry executive Julien Geffard as director of go-to-market strategy for its power business in Europe. The electric two-wheeler market in Europe has seen double-digit growth in 2020, with customers seeking differentiated products that are stylish, smart and lightweight, and available at competitive prices.
Ola will also bring its range of electric two-wheelers to New Zealand. It would help support the New Zealand government’s goal of driving 64,000 new electric vehicles by the end of 2021, while also helping the public sector become carbon neutral by 2025.
Previously, Ola Electric had also added automotive industry veterans such as BVR Subbu and Jaime Ardila to its board, who brought their deep industry experience and expertise in global mobility. Last year, Ratan Tata, Chairman Emeritus of Tata Sons, invested an undisclosed sum in Ola Electric.
Last year, Ola Electric raised $ 250 million from Masayoshi Son’s SoftBank. The investment turned the company into a “unicorn,” or a startup valued at more than $ 1 billion.
The global electric vehicle industry raised $ 162.34 billion in 2019, and is estimated to reach $ 802.81 billion by 2027, growing at a CAGR of 22.6 percent from 2020 to 2027, according to a Allied Market Research report.
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