Ola Electric, the Bengaluru-based electric vehicle (EV) manufacturer, has successfully closed a major funding round, raising Rs 3,200 crore. The investors leading this infusion of capital include Temasek and the State Bank of India. This substantial investment is set to drive Ola Electric’s ambitious plans for the future.
A significant portion of the funds is earmarked for expanding Ola’s EV business. This expansion will encompass various aspects of their operations, with a primary focus on ramping up their two-wheeler manufacturing capacity. By increasing production, Ola Electric aims to meet the growing demand for electric two-wheelers in the Indian market.
The company’s plan is to establish India’s first lithium-ion cell manufacturing facility. This facility will be located in Krishnagiri, Tamil Nadu. Lithium-ion cells are vital components of EV batteries and local production could reduce dependency on imports and lower manufacturing costs.
In line with its commitment to sustainable mobility, Ola Electric is not only expanding its two-wheeler production but also broadening its product lineup. They intend to launch electric motorcycles and electric cars, expanding their portfolio and catering to a wider range of consumers.
Moreover, the company is fast-tracking the construction of a gigafactory. Gigafactories are large-scale manufacturing facilities crucial for the production of EV components, particularly batteries. The acceleration of this gigafactory’s construction is expected to play a pivotal role in India’s journey toward becoming a global hub for electric vehicles.
In a statement, Bhavish Aggarwal, Founder and CEO of Ola Electric, said, “At Ola, our vision is to end the internal combustion engine age in automobiles, and our upcoming gigafactory will be a big leap in India’s journey towards becoming a global EV hub. We are committed to developing core technologies in EVs and cells and are rapidly scaling up manufacturing to further accelerate the transition to sustainable mobility.”
