Business

Uber rival Ola to build world’s biggest scooter factory in India

Firm aims to produce 2 million electric two-wheelers a year for Asia, Europe, Latin America

Updated 5 years ago · Published on 15 Dec 2020 6:10PM

Uber rival Ola to build world’s biggest scooter factory in India
Motorcycles and mopeds are hugely popular in India’s cities, with sales outselling those of cars many times over. – Pixabay pic, December 15, 2020

NEW DELHI – Uber rival Ola plans to build the world’s largest scooter factory in India, aiming to make two million electric two-wheelers a year for Asia, Europe and Latin America.

The Indian ride-hailing firm, which has financial backing from Japan’s SoftBank, yesterday said it will create 10,000 jobs and invest US$325 million (RM1.32 billion) in the plant in the southern state of Tamil Nadu.

The factory will help make India a “manufacturing hub for electric vehicles” as Ola gears up to launch its e-scooters in the coming months, said the company.

Motorcycles and mopeds, which are much cheaper than four-wheelers, are hugely popular in the country’s congested cities, with sales outselling those of cars many times over.

But, they also add to air pollution, and Ola hopes to profit from government efforts to promote electric vehicles by expanding from ride-hailing to making scooters itself.

This year, Ola announced plans to hire over 2,000 people for its electric business, bringing in General Motors veteran Jose Pinheiro to head its manufacturing operations.

In May, the firm, which is active in India, Australia, New Zealand and Britain, acquired Dutch electric scooter maker Etergo, reportedly for US$250 million. – AFP, December 15, 2020

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