Ola intents to buy 1500 acres in Tamil Nadu for EV factory
Ola Electrics is set to acquire around 1500 acres land in Tamil Nadu to set up a electric vehicle factory. The report claimed that the state govt has approved Ola's plan to acquire the land and it might become one of the biggest deals for a factory in the Indian automobile industry.
Citing sources, the report said that an announcement in this regard might be made by Ola CEO Bhavish Aggarwal in the next few days. "It will house the company’s electric vehicles manufacturing facility, a component supplier ecosystem, and a battery cell manufacturing plant," the report added. Ola is expected to invest around 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, said.
As per the report, Ola already has around 500 acres in the area and "is now adding a much bigger land parcel of 1,500 acres as it looks to not only expand the capacity of its electric two-wheelers business, but also looks at making electric cars as well as batteries in the area". Ola wants to house all its critical vendors and suppliers in the same area.
Ola launched its first scooter last year and CEO Agarwal has an aggressive expansion plan as he is not only planning to increase the number of scooter models, he also wants to introduce motorcycles that may come in the next one year or so. The electric vehicle maker is also planning to start its own EV cab services in Bengaluru.
The company eventually plans to scale up the number of EV cabs to over 10,000 in one year in the city. Despite numerous consumer complaints about declining service quality, Ola founder Bhavish Aggarwal said on multiple occasions that the ride-hailing business is "highly profitable" and "a mature business".
