India’s largest taxi-business Ola is planning to projectile their business of vehicle manufacturing while keeping an eye on future prospects of electric vehicles.
The company reportedly engaged the government from multiple states with a proposal to set up the world’s largest vehicle manufacturing facility.
As per the latest reports, Ola is seeking to have 100 acres of unencumbered land to construct its vehicle manufacturing unit.
Whereas the company is yet to release any statement on such media reports, but the sources in known have revealed that startup unicorn of India is primarily focusing on manufacturing electric scooters in manufacturing facility to projectile most of increasing proposals for eScooters in homeland.
The news did’nt surprised many as the company has been making moves towards direction of venturing in business of electric vehicle for some time.
In a recent acquisition, the electric scooter manufacturing startup based in Netherland, hinted the future roadmap of Ola.
As for future road is out in the open, it would put Ola in direct competition with Bajaj Auto, TVs and Hero MotoCop etc. backed to Ather Energy.
Ola itself is backed by Hyundai, which has reportedly mentored the ride-hailing app-based startup that would pave the way to the speedy emerging electric vehicle in the country.
The planned facility is capable of producing 2 million electric scooters, revealed by the people familiar with the proposal.
The Indian government has announced several benefits as well as incentives for companies operating to have plan to operate in electric vehicle space.
Recently, the government announced a 4.6 billion incentive scheme for several companies and organisatons.
Besides this, to make them avialabe more affordable and attractive for the consumers, whereas the government is offering a rebate of Rs 1.5 lakh on interest paid on loan to buy electric vehicle.
The government is committed to reducethe dependency on oil and to reduce down the pollution.
Since electric vehicles satisfy the government objective on both count, the government is pushing existing manufacturers to setup electric vehicle manufacturing plants in India itself.
In the first two quarters of FY’21, 7,552 electric scooters sold in world’s second-most populous nation as compared to 1.3 million conventional scooters sold during the initial period.
Despite of all challenges, industrial experts believe that future is owned by electric vehicles and this is high 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.