Ola Plans $920 Million India Investment in Electric Cars, Batteries

SoftBank Group-backed Ola Electric is willing to invest $920 million in the Indian State of Tamil Nadu for manufacturing electric cars and batteries for EVs, TN state government statement said on Saturday.

Ola Electric will invest 76.14 billion Indian rupees through its subsidiaries Ola Cell Technologies and Ola Electric Technologies, drawn to the growing demand for electric cars in India.

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

The Tamil Nadu state government has signed an MoU with the company for the production of 4-wheeler electric cars and the establishment of 20 GW battery manufacturing capacity at an investment of Rs 7,614 crore.

In a booster to the Electric Vehicle industry, the Tamil Nadu government recently announced its EV policy 2023 to attract investments to the run of Rs. 50,000 crores and generate 1.50 lakh jobs.

In September, Ola said it was looking to expand into Latin America, ASEAN and even European Union countries after entering India's neighbour Nepal first. Tamil Nadu government is looking to boost EV manufacturing and is waiving road tax, registration charges and permit fees for electric cars as per the policy unveiled last week.