Ola Electric has begun the construction of its gigafactory by installing the first pillar at its cell factory in Krishnagiri, Tamil Nadu.
Spread across 115 acres, the Ola Gigafactory will begin operations by early next year with an initial capacity of 5-gigawatt hours (GWh) which will be further expanded in phases to 100 GWh at full capacity.
Upon commencement of operations, Ola Electric claims its gigafactory would be India's biggest cell factory, and at full capacity, will be one of the world's largest cell manufacturing facilities.
"This is a proud moment for us as we installed the first pillar of our Gigafactory today. Our Gigafactory will be a major milestone in India's electrification journey, bringing us closer to making India a global EV hub. With our focus on innovation, technology, and manufacturing at scale, we are committed to driving the future of electric vehicles and #EndICEAge," says Bhavish Aggarwal, founder and CEO, Ola.
Ola claims its gigafactory would be one of the fastest cell factories ever built.
The Ola Gigafactory is a significant step towards realising India's potential of becoming a global EV hub, the company says, adding its aim is to localise all critical elements of the EV value chain.
Ola says it has also invested in cell and battery research and development and has set up a cell R&D facility in Bangalore. The company also recently signed an MoU (Memorandum of Understanding) with the Government of Tamil Nadu to expand its manufacturing capabilities across two-wheelers, four-wheelers (4Ws) and cells. As part of the MoU, Ola will set up an EV Hub which will house advanced cell and electric vehicle manufacturing facilities, vendor & supplier parks, and the larger ancillary ecosystem for EVs at a single location.
This comes three weeks after Ola Electric raised prices of electric scooters as the government reduced FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) subsidy on electric two-wheelers from June 1, 2023. In a notification issued by the Ministry of Heavy Industries on May 19, 2023, the incentive on electric two-wheelers has been reduced to ₹10,000 per kWh from the existing ₹15,000 per kWh. The cap on incentives for electric two-wheelers will be 15% of the ex-factory prices of vehicles as against 40% earlier.
Ola Electric scooter S1 Pro is now priced at ₹1,39,999; S1 (3KWh) at ₹1,29,999; and S1 Air (3KWh) at ₹1,09,999. These electric scooters are now about ₹15,000 costlier than before. "We have marginally increased our product prices starting June, despite a significant reduction in government subsidies, making Ola S1 the best EV proposition in India. Ola Electric remains resolute in its mission to promote electric vehicle adoption in the country and redefine the way people travel," said Aggarwal.