Ola to invest $327M to set up 'the world's largest scooter factory' in Tamil Nadu

Ola said on Monday that it has signed a memorandum of understanding with the government of Tamil Nadu in India to set up what it claims would be the

What happened

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Why it matters

The SoftBank-backed Indian ride-hailing firm said it will invest about $327 million in setting up the factory, which it says would create almost 10,000 jobs and have an initial capacity to produce 2 million electric vehicles in a year.

The move comes as Ola plans to launch and expand its two-wheeler electric vehicles in several markets in the next two quarters, according to a person familiar with the matter. Ola Electric, which spun out of the startup last year, acquired Amsterdam-based Etergo earlier this year. The Dutch has a fleet of scooters that uses swappable, high energy battery that delivers a range of up to 240 km (149 miles). The startup plans to replicate production of similar model of vehicles, the person said.

Ola launched its two-wheeler business, which like the cabs business sees someone drive a passenger around, in 2016 and has created livelihoods for over 300,000 people in India. One of India’s most valuable startups, Ola has made big bets on two-wheeler in recent years to expand the reach of its services to smaller cities and towns across the country. (Compared to four-wheeler, two-wheeler and three-wheeler offer a much more affordable ride to customers and zip faster in busy traffic.)

This news brief is based on reporting published by TechCrunch on 2020-12-14. The original report is linked below.