Ola signs MoU to set up world’s largest factory in Tamil Nadu

Ola on December 14, 2020 signed an agreement with the government of Tamil Nadu to set up its first electric scooter factory which will be worth Rs. 2,400 crores. The factory will manufacture 2 million scooters at a greenfield facility in Hosur. The plan by Ola will also displace Vithalpur facility of Honda in Gujarat, which manufactures 1.2 million units of petrol-powered scooters in a year.

The company has signed an MoU with the Tamil Nadu government for the announced factory. The pact with Ola was a part of 18 MoUs that has been signed by the government of Tamil Nadu, which is worth a cumulative investment of Rs. 19,995 crores and has a potential of creating more than 26,500 jobs.

Excited to announce the world’s largest scooter factory in Tamil Nadu. An investment of 2,400cr, it'll create 10,000 jobs & showcase India's capability to manufacture global products. I thank honorable @CMOTamilNadu for his vision & support. https://t.co/LELVrxGXln @OlaElectric pic.twitter.com/4pvfB23MlO

— Bhavish Aggarwal (@bhash) December 14, 2020

Why it is a significant step in making Aatmanirbhar Bharat?

As per the statement by the ride-hailing platform, in line with PM Modi’s vision, Ola factory in Tamil Nadu will be a significant step in the making of Aatmanirbhar Bharat.

It will lead to the reduction of India’s import dependence in major future sectors such as electric vehicles, creating jobs, boosting local manufacturing as well as improving the technical expertise in the country.

The factory will also help in galvanizing the India’s electric vehicles ecosystem and will establish India as a key player in the Electric Vehicles manufacturing space. It will also cater to the customers not only in India but around the world, including, Asia, Europe, Latin America and more.

Ola factory in Tamil Nadu: Key Details

• Ola factory in Tamil Nadu will create around 10,000 jobs. It will also be the largest scooter manufacturing facility in the world upon completion.

• The factory initially will have an annual capacity of manufacturing 2 million units.

• The new plant is scheduled to be operational in a year.

• As per the Ola Chairman and Group CEO, Bhavish Aggarwal, Ola factory will be one of the most advanced facilities in the world.

• Ola Electric, which is an EV arm of Ola, has raised about USD 400 million from Tata Sons Chairman Ratan Tata, Matrix India, Tiger Global and others.

• The factory will produce the upcoming range of two-wheeler products and will start with its electric scooter. Ola will also bring many software innovations and design to its entire line of two-wheelers.

Top investors in Tamil Nadu: