SoftBank Group-backed Indian electric vehicle (EV) maker Ola Electric on Saturday announced that it had signed a memorandum of understanding (MoU) with the Tamil Nadu government to invest Rs 7,614 crore in the state for manufacturing electric cars and batteries for EVs.

The company, with this MoU, aims to establish a 20 GW battery manufacturing facility in the state to produce its electric cars. According to a statement released by the Tamil Nadu government, Ola will invest Rs 7,614 crore through its subsidiaries Ola Electric Technologies and Ola Cell Technologies, drawn to the growing demand for EVs in India.

Investment in the manufacturing facility will also help provide new employment opportunities to more than 3,000 people.

Ola Electric's cumulative production numbers crossed the 1 lakh mark in November, and it plans to annually manufacture 1.4 lakh cars and hire 3,111 workers in the state through the new investment. The company already manufactures its electric two-wheelers in the state.

Also Read: Ola Electric to open 500 showrooms by next month

Bhavish Aggarwal, founder and CEO of Ola Electric, at the company's annual event on August 15, 2022, announced that the company is working on an electric car. Aggarwal quoted that Ola's upcoming electric car will have "the best performance, best design and the best technology ever built in a car in India."

Ola said that its electric car would be among the fastest and sportiest car in India. Aggarwal claimed that the upcoming EV would be able to sprint from 0 to 100 kmph within 4 seconds and have a driving range of over 500km on a single charge.

He added that the new EV will feature an all-glass roof, will have a drag co-efficient of less than 0.21, and company's proprietary Move OS and assisted driving capabilities. The car is set to arrive in 2024. Ola had also revealed its plans to develop two new vehicle platforms and six different cars, which would be manufactured at its Tamil Nadu Giga factory.

The company, which has around 200 operational experience centres across India, plans to expand its network to 500 outlets by March 2023. In September, Ola said it was looking to expand into Latin America, ASEAN and European Union countries after entering India's neighbour Nepal first.

Earlier this week, the Tamil Nadu government unveiled its EV policy 2023 which aims to garner investments up to Rs 50,000 crore and generate 1.50 lakh new jobs, in a boost to the EV industry.

Tamil Nadu, which already accounts for nearly a third of India’s automotive exports, is looking to boost EV manufacturing and is waiving road tax, registration charges and permit fees for EVs through its new EV policy.

(With input from agencies)

Also Read: Tamil Nadu offers road tax exemptions on hybrid cars and SUVs, incentives for commercial EVs

(Edited by : Vivek Dubey)

First Published:Feb 18, 2023 2:45 PM IST