Tamil Nadu state government, in an official statement, said that electric vehicle manufacturer Ola Electric would invest $920 million in the state to manufacture electric cars and batteries, according to media reports. It also stated that Ola will invest $920 million through its subsidiaries Ola Electric Technologies and Ola Cell Technologies, drawn to the growing demand for EVs in India.
The Tamil Nadu state government has signed an MoU with the company for the production of four-wheeler electric vehicles and the establishment of 20 GW battery manufacturing capacity at an investment of INR 7,614 crore. Though the company’s cumulative production numbers topped 100,000 in November, and it plans to annually make 140,000 cars and hire 3,111 workers in Tamil Nadu through the new investment, where the company already manufactures e-two wheelers in the state, the reports added.
In September, Ola said it was looking to expand into Latin America, ASEAN and European Union countries after entering India’s neighbour Nepal first, as per the report.
With a focus to develop the EV ecosystem in the state, the Tamil Nadu Chief Minister M K Stalin formally released the new EV policy on February 14, in which it unveiled its electric vehicle (EV) policy 2023 to attract investments to the tune of INR 50,000 crore and generate 1.50 lakh jobs. According to the policy, the government will promote Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, and Tirunelveli as pilot cities for implementing e-mobility solutions. Tamil Nadu had reportedly signed MoUs with an investment interest of nearly INR 24,000 crore and employment potential of 48,000 jobs in the EV value chain.
In a recent interaction with Entrepreneur India, Ola Electric CFO G R Arun Kumar had said that investment in self-manufacturing is absolutely essential.
“Fundamentally, the sooner the industry invests in technology, the better it is for our industry. The industry should commit to the customers like how leading players like us do. Investment in self-manufacturing is absolutely essential. Plus, we need the right skill sets for a faster transition to EVs (electric vehicles). Lastly, we need to set up manufacturing at a global scale so that the economies drive costs down,” the CFO said while sharing the key things he thinks the EV industry should do in India.