India’s Ola to pour $326m to set up “world’s largest” scooter factory

Indian ride-sharing giant Ola announced its plans to invest 24 billion rupees (about US$326.3 million) to set up the world’s largest scooter factory in Tamil Nadu.

The company today signed a memorandum of understanding with the Tamil Nadu government to set up its first factory in the state, which it claims will generate almost 10,000 jobs and have an annual capacity of 2 million units.

Photo credit: Ola

“This factory will showcase India’s skill and talent for producing world-class products that will cater to global markets,” said Ola’s group CEO and chairman Bhavish Aggarwal. The factory will cater to customers from India, Europe, Asia, and Latin America, among others.

The company said it’s set to launch the first of its range of electric scooters in the coming months.

Ola said the move falls in line with Prime Minister Narendra Modi’s vision of a self-reliant India, reducing import dependence in key future sectors such as electric vehicles. It would also boost local manufacturing and improve local technical expertise, the company said.

The new factory also aligns with Ola’s global vision to move into a more sustainable and connected future.

Earlier this year, Ola announced its plans to hire over 2,000 employees globally for its electric business as part of its restructuring process. In an internal email sent to employees, Aggarwal said the company aims to onboard 1,000 engineers worldwide, plus another 1,000 people for other positions.

The announcement also came after Ola had acquired electric scooter startup Etergo earlier this year, a move that gave it access to the Amsterdam-based company’s battery-swapping tech.