Ola to invest Rs 7,614 cr in TN to make electric cars, lithium-ion cells

Digital Desk: Ola Electric Mobility, backed by SoftBank, has signed a memorandum of understanding with the Tamil Nadu government to establish a four-wheel EV manufacturing plant and a 20-gigawatt battery manufacturing unit in Krishnagiri District, further advancing its goal to introduce four-wheeled Electric Vehicles (EVs) by 2024.

To do this, Ola may invest roughly Rs 7,614 crore, generate 3,111 jobs, and transform its site into the largest EV hub in the world with giant plants for lithium cells, two-wheelers, and cars. The company's ambitions to expand at its Pochampalli facility include new investment. The action might also enhance the Hosur-Krishnagiri-Dharmapuri (HKD) region's reputation as a centre for auxiliary and electric car components. In addition to Ola, Ather and TVS Motor also produce their electric vehicles at facilities close to Hosur.

“Ola will set up the world's largest EV hub with an integrated two-wheeler, car, and lithium cell gigafactories in Tamil Nadu. Signed an MoU with Tamil Nadu today,” tweeted Bhavish Aggarwal, founder, and CEO of Ola. M K Stalin, the chief minister of Tamil Nadu, and Aggarwal signed the agreement. The business intends to release a vehicle with a 500 km or so all-electric range.

Ola Electric Mobility inked the agreement on Saturday on behalf of its affiliates Ola Cell Technologies (OCT) and Ola Electric Technologies (OET).

About Rs. 5,114 crore of the total investment would go towards the cell production facility, and the remaining Rs 2,500 crore will be used to fund the four-wheeler manufacturing facility. A facility to generate 140,000 electric four-wheelers annually is planned. By 2024, the business had stated its intention to release vehicles. Aggarwal had previously stated that the first car would probably cost less than $50,000.

The company has invested more than Rs 2,400 crore in its current facility in Hosur, which is one of the largest electric two-wheeler manufacturing plants in the world. A new EV policy was released by Tamil Nadu a few days before the current announcement.

"Tamil Nadu is already a major car hub. Through our most recent EV policy, we are moving forward to become the nation's EV capital. According to V Vishnu, managing director and CEO of Guiding Tamil Nadu, "Our strategy meets the expectations of original equipment manufacturers, component manufacturers, charging infrastructure, in addition to demand incentives to meet the consumer requirements."

The Tamil Nadu Electric Vehicles Policy 2023 offers manufacturers incentives such as advanced chemical cell subsidies, investment or turnover-based subsidies, and a 100% reimbursement of state goods and services tax (SGST).

Among other things, the state will offer a five-year 100% tax exemption on electricity for power bought from the Tamil Nadu Generation and Distribution Corporation, a stamp duty exemption, and a subsidy on the price of land. The state has witnessed developments over the past five years that have the potential to create 48,000 jobs in the EV value chain.