Ola Electric plans to build world's largest EV hub in India for Rs 7,610 cr

The hub, spanning 2,000 acres (809 hectares) in the southern Indian state of Tamil Nadu, will be used for manufacturing electric two-wheelers, cars and battery cells

Ola
Photo: Bloomberg
Ragini Saxena | Bloomberg
2 min read Last Updated : Feb 20 2023 | 2:04 PM IST
India’s Ola Electric Mobility Pvt. plans to build what it says will be the world’s largest electric vehicle hub with an investment of Rs 7,610 crore ($920 million) to localize the supply chain for cleaner transport.   
 
The hub, spanning 2,000 acres (809 hectares) in the southern Indian state of Tamil Nadu, will be used for manufacturing electric two-wheelers, cars and battery cells, in addition to housing vendor and supplier parks, Ola said in a statement Friday. The Indian startup will begin mass production of cells from the hub later this year, it said. 

While localizing critical elements of the EV supply chain, such as batteries, will make EVs more affordable, India has only a fraction of the raw materials needed to satisfy domestic demand for lithium-ion batteries — forecast by Crisil to grow 100- fold by 2030. Besides Ola, billionaire Mukesh Ambani’s Reliance Industries Ltd. and bullion refiner Rajesh Exports Ltd. will receive incentives under a $2.3 billion government program to support advanced battery cell development.

Building a reliable supply chain could help Ola iron out issues in producing electric vehicles. The Bengaluru-based company recalled 1,441 electric scooters after one of the vehicles produced in the batch caught fire. Ola scooter deliveries were initially delayed as India relies heavily on imported parts, the supply of which was disrupted by a global chip shortage.

Ola last year unveiled its first lithium-ion cell developed in its battery innovation center in Bengaluru, which saw an investment of $500 million, the startup said in the statement. Over the next decade, Ola will focus on developing a local supply chain for materials and components such as motors, rare-earth magnets, semiconductors, lithium processing and electrode production from minerals like graphite, nickel, it said.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Ola Electric MobilityElectric VehiclesOlatwo wheelersCompanies

Next Story