Ola Electric to invest $920m in Tamil Nadu to manufacture electric cars and batteries: Details

SoftBank Group-backed Ola Electric is reportedly investing $920 million (about Rs 7,600 crore) in the southern Indian state of Tamil Nadu to manufacture electric cars and batteries for electric vehicles ( VE), a statement from the state government said on Saturday.

Ola will invest $920 million (about Rs 7,600 crore) through its subsidiaries Ola Electric Technologies and Ola Cell Technologies, attracted by the growing demand for electric vehicles in India.

The company’s cumulative production figures topped 100,000 in November, and it plans to manufacture 140,000 cars a year and hire 3,111 workers in Tamil Nadu with the new investment. Ola already makes e-two-wheelers in the state.

In September, Ola said he was looking to expand into Latin America, ASEAN countries and the European Union after first entering neighboring India’s Nepal.

Tamil Nadu, which accounts for almost a third of the country’s auto exports, is seeking to boost electric vehicle manufacturing and is waiving road tax, registration fees and license fees for electric vehicles, according to a policy unveiled this week.

On Feb. 9, Ola Founder and CEO Bhavish Aggarwal said Ola Electric would open 500 Experience Centers across India by March. The company currently has 200 experience centers in India and plans to launch an e-bike, according to a PTI report.

Earlier this week, the Tamil Nadu government became the latest state to unveil its electric vehicle (EV) policy for 2023, which aims to garner investment of Rs. 50,000 crore and generate 1.50 lakh of jobs, in a boost to the electric vehicle industry.

The policy was launched as the government expected battery-powered vehicles to play a crucial role in electrifying last-mile connectivity.

Over the past five years, the state has transformed into a leading electric vehicle manufacturing hub with new entrants including Ather Electric and Ola Electric setting up their production facilities in Tamil Nadu.