The agreement with
is the largest long-term debt financing deal in the Indian EV industry, according to a press statement issued on Monday.
“Today’s agreement for long-term debt financing between Ola and Bank of Baroda signals the confidence of institutional lenders in our plans to build the world’s largest two-wheeler factory in record-time. We are committed to accelerating the transition to sustainable mobility and manufacture ‘Made in India’ EVs for the world. We are happy that Bank of Baroda has joined us in our journey,” said Bhavish Aggarwal, chairman & group chief executive officer, Ola.
“The government has brought in several policies to incentivise Make in India and to enable India to become a global EV leader. The Ola Futurefactory will put India on the global EV map. We are proud to be associated with them,” said Sanjiv Chadha, managing director & CEO, Bank of Baroda.
The EV factory or the “Futurefactory” is being built on a 500 acre-site in Tamil Nadu. “At full capacity of 10 million vehicles annually, it will be the world’s largest two-wheeler factory,” the statement said.
The company said the first phase of Ola’s Futurefactory is nearing completion. “The soon-to-be-launched Ola Scooter will be manufactured at the Ola Futurefactory. It will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers,” it said.
The company will open pre-orders in August, according to media reports. It plans to export to Europe and Australia.
Last month, Aggarwal
said he updated Tamil Nadu Chief Minister MK Stalin on the factory. “It was a privilege to meet Honourable Chief Minister of Tamil Nadu MK Stalin. Updated him on the rapid pace at which #OlaFutureFactory is being built,” he tweeted.
It was a privilege to meet Honourable Chief Minister of Tamil Nadu Thiru @mkstalin today. Updated him on the rapid… https://t.co/Yuhpouvkm3
— Bhavish Aggarwal (@bhash) 1625061881000
Ola had last year announced that it will be investing Rs 2,400 crore into phase 1 of the factory.
It had also announced plans to provide charging solutions to all its electric two-wheeler customers through the Ola Hypercharger Network. It is expected to set up over 5,000 charging points across 100 cities in India.