Ola To Foray Into Vehicle Manufacturing: Plans To Setup World’s Largest e-Scooter Manufacturing Facility

Must Read

Elon Musk Added Over $100 Billion To His Net Worth In Just 1 Year, Leaves Jeff Bezos Behind

Jeff Bezos may the world's richest person in the world but it's Elon Musk who has been...

Elon Musk Overtakes Bill Gates And Becomes the 2nd Richest Person in the World

It's been a good week for Elon Musk and his electrical vehicle business Tesla. Earlier this week,...

Free Netflix In India From December: Netflix In A Pursuit Of New Subscribers

A month ago, we reported how Netflix might be brewing something interesting that could lead to a free...

India’s largest taxi-aggregator Ola is planning to jump into the business of vehicle manufacturing, keeping an eye on the future prospects of electric vehicles. The company has reportedly engaged the government of multiple states with a proposal of setting up the world’s largest vehicle manufacturing facility.

According to the latest media reports, Ola is seeking 100 acres of unencumbered land to build its vehicle manufacturing unit. While the company is yet to release any statement on such media reports, sources in the know have revealed that the startup unicorn of India is primarily focusing on manufacturing electric scooters in the planned manufacturing facility to make the most of growing demand of eScooters in India.

The news hasn’t surprised many as the company has been making moves towards the direction of venturing in the business of electric vehicle for some time. The recent acquisition of Etergo, the electric scooter manufacturing startup based in Netherland, hinted at the future roadmap of Ola.

Advertisements

As future road is out in open, it will put Ola in the direct competition to Bajaj Auto, TVs and Hero MotoCop backed Ather Energy.

Ola itself is backed by Hyundai which is reportedly mentoring the ride-hailing app-based startup to pave the way into the fast emerging electric vehicle market.

The planned facility is capable of producing 2 million electric scooters, revealed by the people familiar with the development.

The Indian government has announced various benefits and incentives for companies operating or have planned to operate in the electric vehicle space. Quite recently, the government has announced a $4.6 billion incentive scheme for companies. Besides, to make the electric scooters more affordable and attractive for consumers, the government is offering a rebate up to Rs 1.5 lakh on interest paid on loan to buy an electric vehicle.

The government is committed to reduce its dependency on oil and to cut down pollution. As electric vehicles satisfy the government objective on both count, the government is pushing existing manufacturers to setup their electric vehicle manufacturing plants in India itself.

Advertisements

Despite all such efforts, the adoption of electric vehicle in slow in India, so far. One of the major hurdles for consumers is the unavailability of infrastructure that is required to make electric scooter an eyepopping proposition.

In FY’20, the sales of electric scooters and motorcycles in India reached 152,000 units, recording 20% YoY growth. The sales of electric cars In India was not so encouraging as well. Just 3,400 electric cars were sold during the same financial year in India. Just to put things in context, 1.7 million passenger cars were sold in India during the same period.

In the first two quarters of FY’21, just 7,552 electric scooters were sold in the world’s second-most populous nation compared to 1.3 million conventional scooters sold in the same period.

Despite all challenges, industry experts believe that the future is owned by electric vehicles and this is the right time for existing vehicle manufacturers to put their bets. While traditional vehicle manufacturers will leave no stone unturned, it would be interesting to see how the new-age startups like Ola would compete with companies that are in this market for decades.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Amazon Future Group Dispute Deepens As Singapore Court Turns Down Future Group Plea

The dispute between Amazon and Future Retail is, apparently, far from over anything soon as the Singapore...

Google Pay Fee On Instant Transfer: An Indication Of Google’s Aggressive Monetisation Strategy?

Google has decided to levy fee on instant payment, starting from the US market. A few days back, Google...

Twitter Account Verification Is Back, But Has it Lost Its Mojo?

Twitterati queue up! As the Twitter account verification process which is responsible for awarding blue badges prepares to...

Paytm Lawsuit Impact: TRAI Slaps Fine On Jio, Airtel, BSNL And Other Telcom Operators

The emergence of e-wallets brought along with itself a big uprise in notorious phishing scammers who prey on unsuspecting consumers by pretending...

MobiKwik Takes A Dig At Paytm After The Recent App Ban

The ongoing China-India border tension is resulting in more apps getting banned, and every time that happens the Indian startup unicorn Paytm...

India Bans 43 More Apps As Indo-China Feud Continues

The latest move of the Indian Government has proved that Chinese-origin apps won’t catch a break any time soon.Today, the GOI, Under...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This