Ola Electric Mobility, the electric vehicle manufacturing unit of Ola, has reportedly raised $100 million from the Bank of Baroda (BOB), marking it as one of the largest long-term debt financing contracts in the Indian EV (electric vehicle) industry. The ten-year debt will be utilized to complete Phase 1 of Ola Futurefactory, the company's global production base for electric two-wheelers.
Earlier, the firm had announced that it would be investing around INR 24 billion (~$322 million) to build Phase 1 of the factory. The manufacturing plant is planned to be built in Tamil Nadu on a 500-acre site which on full capacity can produce 10 million electric vehicles annually.
If sources are to be believed, the factory will generate approximately 10,000 jobs and will serve customers in India as well as key countries in Europe, the United Kingdom, Australia, Latin America, and New Zealand.
Following the completion of the first phase of the Ola Futurefactory, the production trials of the Ola scooter will begin. Ola has collaborated with Siemens to develop its electric vehicle manufacturing facility.
In May 2020, Ola Mobility purchased Etergo BV, an electric scooter manufacturer based in Amsterdam. Established in 2014, Etergo has developed an all-electric scooter called AppScooter which uses high density batteries to offer a driving range of up to 240 km. Apart from this, Ola Electric had also secured INR 17.25 billion (~$250 million) from Tokyo-based SoftBank in July 2019.
Notably, the Indian government has been pushing EV (electric vehicle) adoption by offering demand incentives. Take for instance, the Department of Heavy Industries has recently proposed a special demand incentive of INR 15,000 for electric two-wheelers under the Faster Adoption and Manufacturing of EVs Phase-II (FAME-II) program in the country.