India’s popular ride-service application Ola has taken its first step to manufacture electric vehicles (two, three and four wheelers) locally in India.
The company is currently busy setting up a huge manufacturing plant on the outskirts of Bengaluru, Karnataka at an area of 500-acres and at a cost of $330 billion, says the company’s founder Bhavish Aggarwal.
Ola Electric Mobility Pvt Ltd. Company was incorporated back in 2017 itself and in a couple of years grew up to acquire more than a billion dollars in capital to become a unicorn company. He says he has got strong backers from Kia Motors and Hyundai as well. The rest of the share holders are Softbank Group Corp, Tiger Global Management, Tata Motors and etc.
The company is currently evaluated at $5-billion. Bhavish Aggarwal hopes to erect a plant in the site within the next twelve weeks from now. If once the plant is setup, it is expected that the plant will rake in $2 million annually, producing 15% of world’s e-vehicles by 2022 for the world’s largest market, if all goes by plan.
As petrol and diesel prices are becoming and still will become deary day-by-day due to various factors, this seems to be the best time in the business to introduce a new alternative to the people. Also, India contributed 21 cities of 30 as world’s most polluted urban centres once in 2019.
If e-vehicles are introduced to Indian consumers in the next one or two years, India’s e-vehicle market could grow up to $206 billion in a decade. Currently only 1% of all vehicles are running on electricity, but by 2030 we can expect at least 35% of all two-wheelers running on electricity and 65%-75% of three-wheeler vehicles running in electricity significantly.
Currently e-vehicles in India are not so affordable by the common man. As the cost of producing and acquiring materials for e-vehicles is high, we will have to pay at least double or triple the cost of traditional vehicles. So, in order to reduce costs Bhavish decides to design, manufacture or procure as much as locally as possible.
Bhavish very well knows that mileage is the key to cracking India’s market. He also says that similar to Tesla, Ola Electric will even produce its own power cells. Last year a Netherlands based scooter maker Etergo EV was acquired to start its e-scooter making.
The manufacturing plant will house 10,000 workers alongside 3,000 robots and 1,000-member engineer team. The e-vehicle manufacturing market in India is getting crowded soon with major manufactures like Tesla, Tata, Mahindra, China’s Niu and Xpend Inc and Athers as well already in game.
A prototype of the Ola scooter was shown in public at Koramangala, Bengaluru with novel lighting, detachable batteries and good space storage trunks below seats.
Ola had recently launched ride-service in Australia and New Zealand as well. Four of Ola’s employees have been made Ola Electric’s permanent employees. Bhavish Aggarwal currently owns upto 40% of Ola Electric’s share at $400 million.