Six months after it acquired the Dutch start-up Etergo BV, Ola Electric has announced a Rs 2,400-crore ($320 million) investment plan to set up an electric scooter (e-scooter) manufacturing plant in Hosur, Tamil Nadu (India). The SoftBank-backed firm aims to make India a manufacturing hub for electric vehicles (EVs). Ola has signed a memorandum of understanding with the TN government for this facility. Upon completion, the factory will create almost 10,000 jobs. It will initially have an annual capacity of 2 million units. Etergo BV is an Amsterdam-based e-scooter equipment manufacturer company.
In a blog post media release, Bhavish Aggarwal, Chairman and Group CEO, Ola, said, ‘‘We are excited to announce our plans to set up the world’s largest scooter factory. This is a significant milestone for Ola and a proud moment for our country. We rapidly progress towards realizing our vision of moving the world to sustainable mobility solutions across shared and owned mobility. This will be one of the most advanced manufacturing facilities in the world. This factory will showcase India’s skill and talent to produce world-class products that will cater to global markets.”
In 2019, Ola Electric had raised $250 million from Masayoshi Son’s SoftBank. The investment turned the ride-hailing aggregator’s e-vehicle arm into a unicorn or a start-up valued at more than $1 billion.