Ola to buy 1500 acres in Tamil Nadu for EV factory: Report – EQ Mag
The Tamil Nadu government has reportedly approved a proposal by ride-hailing company Ola to acquire around 1,500 acres in the state for the construction of an electric vehicle (EV) manufacturing facility, a component supplier ecosystem, and a battery cell manufacturing plant.
An official announcement regarding the deal is expected to be made in the coming days.
Ola co-founder and CEO Bhavish Aggarwal as well as top officials from the Tamil Nadu government are expected to be present during the announcement.
According to a Times of India report, while the scale of the investment by Ola in the facility is not yet known. However, it is believed that Ola has indicated to the state government that it expects investments to the tune of Rs 1 lakh crore by the end of the decade in the ‘electric vehicles’ park that it is setting up at the Krishnagiri district in Tamil Nadu.
Ola, co-founded by Bhavish Aggarwal, already owns 500 acres in the area and is seeking to expand its capacity for electric two-wheelers, as well as add production of electric cars and batteries.
The battery plant, which is being set up to meet the needs of Ola’s growing EV business, will benefit from the government’s production-linked incentive programme for advanced cell chemistry EV batteries.
In addition to expanding the number of e-scooter models, Aggarwal has also indicated plans to introduce motorcycles in the near future.
The Tamil Nadu government reportedly sees the Ola project as a way to attract other EV manufacturers to the state and boost production of sustainable and green products.
The state has previously been a major hub for automobile manufacturing, with companies such as Hyundai, Ford, Ashok Leyland, Royal Enfield, Renault-Nissan, and BMW investing in factories there.
However, in recent years, new factory opportunities have largely gone to Gujarat and Haryana.
By establishing a large EV supplier ecosystem as part of the Ola project, the Tamil Nadu government hopes to bring more manufacturing back to the state.
Source: PTI
