Ola to foster a cleaner and more sustainable future

Achieving a significant milestone Ola has signed an agreement with the government of Tamil Nadu to invest US$ 326.3 million for setting up its first e-scooter factory at Hosur.

December 15, 2020

Ola has signed an agreement with the Tamil Nadu government to build a US$ 326.3 million EV plant.

This will be the world’s largest e-scooter factory which will boost employment by creating 10,000 jobs.

According to a KPMG-CII report, EV penetration in India will be nearly 30% in the next 10 years.

India’s EV segment is less than 1% of total vehicle sales of which, 2 wheelers account for 5,00,000 vehicles.

With an aim to move towards its global vision of converting into a more sustainable, available, and connected future, Ola is gearing up to build a US$ 326.3 million EV plant, the world’s biggest e-scooter factory to create 10,000 jobs. It aims to roll-out e-scooters via its new business vertical to sell green vehicle technologies in India and other markets world-wide including nations like Australia, the Netherlands, New Zealand inter alia by the first quarter of 2021. The company plans to set up this plant in Hosur district of Tamil Nadu. Ola’s foray into the EV segment comes at the most opportune moment, propelling India further towards green technologies and sustainable transport solutions to curb the challenges of pollution. With the help of its recently acquired a Netherland based company Etergo BV, Ola plans to tap the EV market backed by Japan’s Softbank. 

India’s EV segment accounts for less than 1% of total vehicle sales of which, according to the Society of Manufacturers of Electric Vehicles (SMEV), two-wheelers account for 5,00,000 vehicles. An October 2020 report by KPMG-CII estimates that EV penetration in India will be nearly 30% in the next 10 years. Moving forwards Ola plans to launch in the EV segment, scooters first and then other categories of 2,3 or even 4-wheelers. 

The Indian EV industry, currently in its nascent stages will receive a significant impetus with the establishment of this factory, which will showcase India’s skill and talent to produce products that will cater to global markets. The EV plant will also help in reducing India’s import dependence in a sector like electric vehicles, boost local manufacturing, create employment, and improve the technical expertise in the country. India with its unique prowess, manpower and demography, is well placed to be a global hub for the manufacturing of state-of-the-art electric vehicles (EVs)