Ola Electric to Invest $920 Million in Tamil Nadu for EV Manufacturing and Battery Plant Expansion
As the EV industry in India is expected to generate up to 10 million jobs by 2030
18 February 2023
Ola Electric is investing $920 million in Tamil Nadu to expand its EV manufacturing capabilities.
The investment will establish a 20 GW battery manufacturing facility and create new job opportunities in the state.
Ola Electric aims to launch a new EV in 2024 and plans to develop two new vehicle platforms and six different cars.
Ola Electric, the SoftBank Group-backed Indian electric vehicle (EV) manufacturer, is set to invest $920 million in the southern Indian country of Tamil Nadu to enlarge its EV manufacturing capabilities. The funding will be made through the company's subsidiaries, Ola Electric Technologies, and Ola Cell Technologies, and will be used to manufacture electric motors and batteries for EVs. This go is in response to the developing demand for EVs in India, which is being driven by way of rising gas prices, increasing environmental concerns, and government insurance policies merchandising EV adoption.
Tamil Nadu, which accounts for almost a third of India's automobile exports, has been keen to enhance EV manufacturing in the state and recently unveiled an EV coverage aimed at attracting investment of up to Rs 50,000 crore ($6.7 billion) and producing 1.5 lahks (150,000) new jobs in the EV industry. As a section of this policy, the kingdom is waiving avenue tax, registration charges, and permit fees for EVs.
Ola Electric's investment in Tamil Nadu will establish a 20 GW battery manufacturing facility in the country to produce its electric-powered cars. The company's cumulative manufacturing numbers already topped 100,000 in November, and it plans to annually manufacture 1.4 lakhs (140,000) motors and employ 3,111 employees in Tamil Nadu via the new investment. Ola already manufactures e-two-wheelers in the state, and the new investment will supply new employment possibilities to greater than 3,000 people.
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Bhavish Aggarwal, founder and CEO of Ola Electric, has introduced that the agency is working on an electric-powered auto that will have "the fine performance, quality diagram and the satisfactory science ever constructed in a car in India." Aggarwal claims that the upcoming EV will be amongst the quickest and sportiest cars in India, with a driving, vary of over 500km on a single cost and the potential to sprint from 0 to one hundred mph in four seconds. The new EV will additionally feature an all-glass roof, a drag co-efficient of less than 0.21, and Ola's proprietary Move OS and assisted riding capabilities. The vehicle is set to arrive in 2024, and Ola plans to advance two new vehicle platforms and six one-of-a-kind cars, which will be manufactured at its Tamil Nadu Giga factory.
Ola Electric's investment in Tamil Nadu is a sizeable step toward achieving the Indian government's goal of making India chief in EV manufacturing and adoption. The Indian authorities have set a goal of attaining 30% electric mobility through 2030, which will require a huge enlarge in the production of EVs and EV components. The government has also announced quite a few incentives to motivate the adoption of EVs, together with tax exemptions and subsidies for EV consumers and manufacturers.
In addition to boosting EV manufacturing, the growth of Ola Electric's operations in Tamil Nadu will additionally create new job opportunities in the state. The EV industry is expected to generate sizeable employment in India, with a recent report estimating that the industry should create up to 10 million jobs by 2030.