Domestic ridesharing company Ola Cabs on December 14 announced that it has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government in order to open a e-scooter factory in the southern state. It is said to be the world’s largest scooter factory and Ola in its bid to establish itself in the electric vehicles market has signed it.
The Ola scooter factory which is going to be constructed with an investment of Rs. 2,400 crore will manufacture approx. 2 million units per year. Also, it is reported that the factory will help in opening 10000 jobs as well. Ola is planning to launch its first electric scooter in the coming few months and this scooter plant in Tamil Nadu will help the company to boost its portfolio.
Commenting on the announcement, Bhavish Aggarwal, Chairman and Group CEO, Ola, said, “We are excited to announce our plans to set up the world’s largest scooter factory. This is a significant milestone for Ola and a proud moment for our country as we rapidly progress towards realizing our vision of moving the world to sustainable mobility solutions across shared and owned mobility.”
As per Ola, the factory would cater the needs both locally and globally while enhancing the technical potential in India when it comes to electric mobility. Ola, which expected to become a manufacturing hub for electric vehicles said that the manufactured scooters will be shipped to the markets of Asia, Europe and Latin America.
The factory will initially manufacture Ola’s upcoming electric scooters and other two-wheeler products. The company has also planned to introduce some design and software innovations in its production facility.
The company’s CEO has said during an event in November that their ambition was to become a leader in bringing about mobility with small electric vehicles in the Indian market.
He further said, “India is the world’s largest two-wheeler market. Asia is 80-90% of the global two-wheeler market.”