SUMMARY
Spread across 115 acres of land, the Ola gigafactory will begin operations by early next year with an initial capacity of 5 gigawatt-hour
The capacity of Ola Electric’s upcoming factory in Krishnagiri will be expanded in phased to 100 GWh
The factory is part of the attempts of Ola Electric, the leading two-wheeler electric manufacturer in the country, to build multiple capabilities in-house
Electric mobility startup Ola Electric on Wednesday (June 21) said it has commenced the construction of the country’s biggest gigafactory at Krishnagiri in Tamil Nadu.
Spread across 115 acres of land, the Ola gigafactory will begin operations by early next year with an initial capacity of 5 gigawatt-hour (GWh), which will be further expanded in phases to 100 GWh at full capacity, the company said.
“Our gigafactory will be a major milestone in India’s electrification journey, bringing us closer to making India a global EV hub,” said Bhavish Aggarwal, founder and CEO of Ola Electric.
Last year in July, Ola Electric unveiled its indigenously developed lithium-ion (Li-ion) cell, NMC 2170. The startup then said it would begin its mass production in 2023 at its upcoming gigafactory.
In an attempt to become a leading player in India’s emerging EV ecosystem, Ola Electric has been focusing on building multiple capabilities in-house besides being a vehicle manufacturer. Last year, it announced an investment of $500 Mn to set up its Battery Innovation Center (BIC) in Bengaluru, which will be an R&D facility for its battery cells
The company also has plans to build electric four-wheelers, electric sports category motorcycles, and more.
The Aggarwal-led EV manufacturer signed an MoU with the Tamil Nadu government in February this year to invest over INR 7,600 Cr to set up an EV hub in the state. Over the next five years, Ola Electric plans to invest in building the facility for manufacturing its vehicles ranging from electric two-wheelers to four-wheelers, EV components, and cells.
Ola Electric plans to set up an EV Hub in the state which will house advanced cell and electric vehicle manufacturing facilities, vendor and supplier parks, and the larger ancillary ecosystem for EVs at a single location.
Currently, it also operates a two-wheeler EV manufacturing facility in Krishnagiri.
Ola Electric Leads The Two-Wheeler EV Space
Despite initial hiccups, Ola Electric is currently the leading electric two-wheeler player in the country in terms of sales.
The total electric two-wheeler registrations in the country crossed the 1 Lakh mark last month, with Ola Electric taking the top spot with registrations of over 28,500 units.
However, the FAME-II probe by the Centre against over a dozen EV makers for misappropriation of subsidies and its subsequent actions, including a cut in subsidy amount, have affected the registrations of all the players in the space, including Ola Electric, in June.
It must be noted that as a result of the subsidy cuts, several manufacturers have also increased their vehicle prices. Ola Electric increased the prices of its S1 and S1 Pro models by INR 15,000 each from June 1.
The total vehicle registrations of Ola Electric, which is also eyeing an IPO in 2024, stand at a meagre 9,577 units in June so far.
Despite the ongoing issues, the overall EV space in the country continues to boom and remains an attractive proposition for global players. After cancelling its plans to set up a base in India due to differences with the government over taxation and incentives, EV giant Tesla is now again looking to enter the country. Earlier today, Elon Musk met Prime Minister Narendra Modi in the US and said after the meeting, “I am confident that Tesla will be in India and will do so as soon as humanly possible.”
