Ola invests Rs 2,400 crore to setup e-scooter factory in Tamil Nadu

Ola Electric has announced a Rs 2,400-crore ($320 million) investment plan to set up the ‘world’s largest’ electric scooter (e-scooter) manufacturing plant in Hosur, Tamil Nadu (TN). Ola has signed a memorandum of understanding with the TN government for this facility.

Upon completion, the factory will create almost 10,000 jobs. It will initially have an annual capacity of 2 million units.

Bhavish Aggarwal, Chairman and Group Chief Executive Officer, Ola said the factory would be one of the most advanced manufacturing facilities in the world. It would showcase India’s skill and talent to produce world-class products that would cater to global markets.

Aggarwal said, “This is a significant milestone for Ola and a proud moment for our country as we rapidly progress towards realising our vision of moving to sustainable mobility solutions across shared and owned mobility”.

Ola’s factory will serve customers not only in India but in markets the world over, including Europe, Asia, and Latin America.

The move has placed Ola in direct competition with legacy electric two-wheeler makers, such as Ather Energy, Hero Electric, and TVS Motor Company.

The company said that in line with Prime Minister Narendra Modi’s vision, Ola’s factory was an important step in making India 'atmanirbhar'. It would catalyse the reduction of India’s import dependence in a key future sector like EVs, boost local manufacturing, create jobs, and improve technical expertise in the country.

According to Ola, the factory will also galvanise India’s EV ecosystem and establish the country as a key player in the EV manufacturing space. The factory will produce Ola’s upcoming line of two-wheelers, starting with Ola’s e-scooter. It features many firsts, including seamless design and a unique removable banana battery that is easy to carry and can be charged anywhere. It is also equipped with intelligent software that elevates the entire consumer experience of owning a scooter. Ola plans to bring many such design and software innovations to its entire two-wheeler product portfolio.