Ola to spend $327 million in Tamil Nadu to set up "the world's largest scooter factory" - Tech Backbone

Ola to spend $327 million in Tamil Nadu to set up "the world's largest scooter factory" 

- Tech Backbone

Ola said on Monday that it signed a memorandum of understanding with the Tamil Nadu government in India to build what it says will be the "largest scooter manufacturing facility in the world" in the South Indian state as the Indian ride-hailing business began a new drive with electric vehicles.

The Indian ride-hailing company sponsored by SoftBank said it will spend approximately $327 million in setting up the plant, which it claims will generate nearly 10,000 jobs and have an initial ability to manufacture 2 million electric vehicles a year. 

The move comes as Ola plans, according to a person familiar with the matter, to introduce and develop its two-wheeler electric vehicles in many markets in the next two quarters. Earlier this year, Ola Electric, which spun out last year, purchased Amsterdam-based Etergo. The Netherlands has a scooter fleet that uses swappable, high-energy batteries that have a range of up to 240 km (149 miles). The start-up plans to duplicate identical car model manufacturing, the individual said.

In 2016, Ola launched its two-wheeler service, which sees someone driving a passenger around like the taxi business, and has generated livelihoods for more than 300,000 people in India. Ola has made big bets on two-wheeler in recent years, one of India's most valuable startups, to extend the scope of its services to smaller cities and towns throughout the country. 

In a tweet, Ola said the new factory would strengthen India's electric vehicle ecosystem and serve, among other markets, customers in Europe, Asia and Latin America. 

We are proud to share our plans to set up the biggest scooter factory in the world. This is a huge achievement for Ola and a proud moment for our country as we are increasingly progressing towards achieving our goal of pushing the planet around mutual and owned mobility through affordable mobility solutions. It will be one of the world's most modern processing centres. Bhavish Aggarwal, Chairman and Group CEO of Ola, said in a statement that this factory will demonstrate India's potential and talent to manufacture world-class goods that will appeal to global markets.