On Monday, Ola signed a memorandum of understanding with the federal government of Tamil Nadu. According to the memorandum, Ola will develop “world’s largest scooter manufacturing facility” within the South Indian state, worth ₹2,404 crore ($327 million). This venture is likely to create virtually 10,000 jobs and can possibly supply 2 million electrical automobiles in 12 months.
“This will be one of the most advanced manufacturing facilities in the world. This factory will showcase India’s skill and talent to produce world class products that will cater to global markets,” said Bhavish Aggarwal, Chairman and Group CEO, Ola in a statement.
Ola acquired Amsterdam-based Etergo 6 months ago, a testament to its commitment towards the two wheeler market. Etergo is a Dutch firm that has built a scooter that uses swappable, high energy battery that provides a range of up to 240 km (149 miles). The remarkable design and efficiency of Etergo’s scooter has awarded it the honor of being called “the Tesla of the scooter world” by many.
For Ola, two wheelers mobility option has become a huge point of focus, since it has proven to be more affordable for tens of millions of Indians. The startup has also been heavily investing and developing its branch of Ola electric, as it continues to raise new capital from investors. So the acquisition of Etergo and memorandum with the government of Tamil Nadu couldn’t come at a better time.
Ola intends to launch and expand its two-wheeler electrical automobiles in several markets within the upcoming two quarters, according to a report by TechCrunch.
In a press release, Ola stated its new manufacturing unit would boost India’s electrical car ecosystem and reach clients in Europe, Asia, and Latin American amongst different markets.
On 3rd on this month Ola had roped in GM veteran Jose Pinheiro as its Head of Global Manufacturing and Operations for its Electric Business. The deep manufacturing expertise of Jose Pinheiro will be critical in building Ola’s entire range of two-wheeler products, starting with the soon-to-be-launched electric scooter. Targeting the European market, Ola had also brought on board Julien Geffard as the Director of Go-To-Market Strategy for its electric business in Europe.
