Why Ola Electric Is Set to Invest $900 Million in Tamil Nadu

SoftBank Group-backed Ola Electric would invest $920 million (roughly Rs. 7,600 crore) in the southern Indian state of Tamil Nadu to manufacture electric cars and batteries for electric vehicles (EVs), a state government statement said on Saturday.

Ola will invest $920 million (roughly Rs. 7,600 crore) through its subsidiaries Ola Electric Technologies and Ola Cell Technologies, drawn to the growing demand for EVs in India.

The company’s cumulative production numbers topped 100,000 in November, and it plans to annually make 140,000 cars and hire 3,111 workers in Tamil Nadu through the new investment. Ola already manufactures e-two wheelers in the state.

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

Tamil Nadu, which accounts for nearly a third of the country’s automotive exports, is looking to boost EV manufacturing and is waiving road tax, registration charges and permit fees for EVs, according to a policy unveiled this week.

On February 9, Ola founder and CEO Bhavish Aggarwal said that Ola Electric will open 500 experience centres across India by March. The firm, currently has 200 experience centres in India and is planning to launch an electric 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 investments to the tune of Rs. 50,000 crore and generate 1.50 lakh jobs, in a boost to the EV industry.

The policy was launched in the backdrop of the government expecting battery operated vehicles to play a crucial role in the electrification of last mile connectivity.

During the last five years, the state has transformed into a leading EV manufacturing hub with new entrants including Ather Electric and Ola Electric having set up their production facilities in Tamil Nadu.