Electric vehicles (EVs) have been gaining popularity in recent years due to their environmental benefits, reduced operating costs, and technological advancements. As the world transitions towards a more sustainable future, it is becoming increasingly clear that EVs are the way forward.
Recently Bangalore-based Ola Electric pledged to invest Rs 7,614 crore over the next five years to expand its production unit at Pochampalli in Tamil Nadu’s Krishnagiri district. They plan to manufacture Lithium-ion cells that are used in electric vehicles (EVs).
The Tamil Nadu government issued its electric vehicle (EV) policy 2023 which aims to garner investments to the tune of Rs 50,000 crore and generate 1.50 lakh jobs, in a boost to the EV industry. The Chief Minister M K Stalin formally released the new policy in the presence of government officials at the Secretariat in Chennai. It also stated that the government would encourage the adoption of electric vehicles in the state with 100 per cent road tax exemption among others.
A Memorandum of Understanding(MOU) was signed between Ola Electric Mobility Private Limited and the Tamil Nadu government in the presence of Chief Minister M K Stalin and Bhavish Aggarwal, CEO of Ola Electric at the Secretariat in Chennai. The Tamil Nadu government is appreciative of the 3111 jobs this project will create and hopes to attract more companies to set up plants in the state.
Ola Cell Technologies Pvt Ltd (OCT) targets to expand its facility in Pochampalli by installing a 20 GWH capacity Giga factory. The company’s application to manufacture EV cells under the production-linked incentive (PLI) scheme for developing advanced cells was approved by the Union Government in 2022, which allotted it a 20 GWH capacity. From a total of Rs. 7614 crores, they plan to use Rs 5,114 crores to expand the cell manufacturing plant so as to reduce India’s dependency on imports of EV cells from China. They also are setting up a four-wheeler manufacturing unit with a capacity of 1.4 lakh units per annum using another Rs 2,500 crore. Like the existing factory, the new units are also likely to employ only women.
As the Indian government continues to promote the adoption of EVs through policy incentives, we can expect to see more companies entering the market and investing in manufacturing facilities in the country.
Tesla – The American EV maker has announced plans to set up a manufacturing facility in India. The company is reportedly in talks with several state governments to finalize a location for the plant.
Mahindra & Mahindra – The Indian automaker has been manufacturing EVs for several years and has announced plans to invest in a new EV manufacturing plant in Chakan, near Pune.
Tata Motors – The Indian automaker has launched several EV models and has announced plans to invest in a new EV manufacturing plant in Gujarat. The company also plans to set up a battery manufacturing facility in the state.
MG Motor – The Chinese-owned automaker has launched its first EV model in India and has announced plans to set up a battery assembly plant in Gujarat.
Hyundai – The South Korean automaker has been manufacturing EVs in India and has announced plans to invest in a new EV manufacturing plant in Tamil Nadu.
Suzuki – The Japanese automaker has announced plans to invest in a new EV manufacturing plant in Gujarat, in partnership with Toyota.
Other companies like Ather, Ampere, TVS Motor Company etc are all setting up EV plants to increase their capacities so that India can be abreast with the rest of the world in the manufacture of EVs. The future of transportation is undoubtedly going to be Electric Vehicles.