Ola Electric to Invest $920 Million in Tamil Nadu to Manufacture Electric Cars, Batteries: Details

SoftBank Group-backed Ola Electric will invest $920 million (approximately Rs. 7,600 crore) in the southern Indian state of Tamil Nadu to produce electric vehicles and electric vehicle (EV) batteries, the government of the southern Indian state of Tamil Nadu said in a statement on Saturday.

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

The company’s cumulative production exceeded 100,000 vehicles in November, and it plans to produce 140,000 vehicles annually through new investments and employ 3,111 workers in Tamil Nadu. Ola already manufactures electric two-wheelers in the state.

In September, Ola said it was looking to expand into Latin America, ASEAN and EU countries, after first entering India’s neighbor Nepal.

Tamil Nadu, which accounts for nearly a third of the country’s car exports, is looking to boost electric vehicle manufacturing and exempt them from road tax, registration and license fees, under a policy unveiled this week.

On February 9, Ola founder and CEO Bhavish Aggarwal said that Ola Electric will open 500 experience centers in India in March. According to a PTI report, the company currently has 200 experience centers in India and plans to launch an e-bike.

Earlier this week, the Tamil Nadu government became the latest state to announce the Electric Vehicle (EV) Policy 2023, which aims to attract investments of Rs. 50,000 crore and create 1.5 lakh jobs, thus boosting the electric vehicle industry.

The policy comes against the backdrop of the government’s expectation that battery-powered vehicles will play a key role in the electrification of 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 production facilities in Tamil Nadu.