SoftBank Group-backed Ola Electric is planning to invest $920 million (Rs 7,614 crore) in Tamil Nadu in the next five years. The money will be spent to help manufacture electric cars and batteries for electric vehicles (EVs), a state government statement said on Saturday.
The major investment will come through Ola’s subsidiaries Ola Electric Technologies and Ola Cell Technologies, drawn to the growing demand for EVs in India. It is expected to provide jobs for over 3,000 people.
A Memorandum of Understanding between Ola Electric Mobility Private Limited and the Tamil Nadu government was signed on Saturday in the presence of Tamil Nadu Chief Minister M K Stalin and Ola CEO Bhavish Aggarwal.
Of the Rs 7,614 crores, about Rs 5,100 crore will go into a cell manufacturing plant. The remaining Rs 2,500 crore will go into a four-wheeler plant which will have the capacity to manufacture 1.4 lakh cars per annum.
In September last year, the ridesharing company said it was looking to expand into Latin America, ASEAN and European Union countries after entering India’s neighbour Nepal first.
Tamil Nadu, which accounts for nearly a third of the country’s automotive exports, is looking to boost EV manufacturing and is waiving road tax, registration charges, and permit fees for EVs, according to a policy unveiled this week. The policy aims to garner investments to the tune of Rs 50,000 crore and generate 1.50 lakh jobs.
“To support this goal, Tamil Nadu aims to electrify the vehicular fleets operating in the State by leveraging its vibrant automotive ecosystem comprising original equipment manufacturers, auto component ancillaries, highly skilled workforce, and robust R&D capabilities,” the policy document said.
(With agency inputs)
Google showcases what its ChatGPT competitor ‘Bard’ can do
New YouTube CEO Neal Mohan could’ve been with Twitter, but Google paid him $100 million to stay