Ola ventures into electric two wheeler production, inks pact with Tamil Nadu government

The Ola group has planned to build a global electric two-wheeler business in Tamil Nadu and has signed an MoU with the state government for setting up a manufacturing plant at Hosur at an investment of Rs 2,354 crore. Tamil Nadu Chief Minister Edappadi K. Palaniswami signed a memorandum of understanding for 18 projects to the tune of 19,995 crores in investments entailing 26, 509 jobs in Tamil Nadu.

The Tamil Nadu government has managed to attract Ola Electric Mobility during the COVID-19 pandemic, while most of the other states lag behind in investments. Ola Electric Mobility will open an electric two-wheeler manufacturing unit at Hosur with an investment of Rs. 2,354 crore. It will generate employment for over 10,000 people. 

In a bid to aggressively build a global electric two-wheeler business, Ola has therefore selected Tamil Nadu as its destination. The company has planned to make it the world's largest scooter factory catering to domestic and international markets. The plant will initially have an annual capacity of 2 million units. It will produce Ola’s upcoming range of two-wheeler products. 

Commenting on the development, Bhavish Aggarwal, the Executive Chairman of OLA, said, “This plant will be the largest plant in the world with the latest technology. Through this, India's professionalism will be exposed internationally. It can be revealed that Indian products are suitable for international markets”.

Tamil Nadu has become the industrial destination for most of the business giants even during the time of a post-pandemic scenario due to its single-window clearance system and the approach of the state government.