Ola to spend $320Mn to build world’s largest electric scooter factory

Ola to spend $320Mn to build world's largest electric scooter factory

The factory would generate almost 10,000 jobs and will at first have an annual capacity of 2 million units

Ola Electric, a unit of one of the world’s leading ride-hailing companies Ola, has announced that the their firm is planning to invest US$320 million (Rs 2,400-crore) to set up a manufacturing plant in Hosur, Tamil Nadu (TN) which, if sources are to be believed, would be the biggest e-scooter factory in the world.

Apparently, Ola Electric visions on making India a key manufacturing hub in the electric vehicle arena. With that in mind, the company has signed an MoU (memorandum of understanding) with the Tamil Nadu government regarding the construction of the proposed e-scooter factory.

Speaking on this context, Bhavish Aggarwal, Chairman & Group CEO, Ola, said that their firm is thrilled to announce its plans to construct the world’s largest and most advanced e-scooter factory that would showcase the unique skillsets and talent of Indian workforce in the area of producing world-class products that could soon meet the demands of global markets.

Claims are made that Ola Electric, with this move, will target customers in India as well as in international markets like Europe and Latin America. This development has placed the ride-hailing company in direct competition with other major Indian electric two-wheeler makers such as Hero Electric, Ather Energy, and TVS Motor Company.

It is certain to say that Ola is betting big on its EV business, which for the record was last valued at $6 billion. However, the Covid-19 pandemic continues to cause ripples in the ride-hailing industry.

For instance, in May, Ola had terminated 1,400 employees (over 33% of its workforce) due to the pandemic. Nonetheless, with recent plans to make significant development in the EV landscape, Ola now has said that it will hire over 2,000 people for its electric business.

Source Credit: https://www.business-standard.com/article/companies/ola-to-set-up-world-s-largest-scooter-factory-to-invest-rs-2-400-cr-120121400436_1.html