Ola Electric to invest Rs 7,614 crore in Tamil Nadu to produce electric cars

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Ola Electric Mobility Private Ltd. and the government of Tamil Nadu have signed a Memorandum of Understanding, which was announced by Bhavish Aggarwal on Twitter. This would allow Ola to produce electric vehicles and lithium-ion batteries in Tamil Nadu. 

According to the terms of the agreement, the EV manufacturer would spend a total of Rs 7,614 crore inside the state, of which Rs 2,500 crore will go towards the assembly of EVs and Rs 5,114 crore will go towards the manufacture of lithium-ion batteries. The Krishnagiri district of the state is where both facilities will be located.

“Ola will set up the world’s largest EV hub with integrated 2W, Car, and Lithium cell Gigafactories in Tamil Nadu. Signed MoU with Tamil Nadu today. Thanks to Hon. CM@mkstalin for the support and partnership of the TN govt! Accelerating India’s transition to full electric!” tweeted Bhavish Aggarwal.

There were speculations that Ola will purchase 1500 acres of property in the state to build a plant specifically for producing electric vehicles. In reality, the company also introduced three additional battery pack options for the Ola S1 Air models, and provided a brief preview of its forthcoming electric bikes at the same time.

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Ola is working on introducing its own electric taxi service to Bengaluru as well. The company’s long-term goal is to double the current number of electric taxis in the city to over 10,000 within a year. According to Bhavish Aggarwal, the ridesharing sector is already a very lucrative and established market.