Ola to build Rs 2,400-crore EV manufacturing facility with Siemens

To set up global AI-powered facility in Tamil Nadu, according to a prior deal

Ola on Wednesday said it had tied up with Siemens to build its upcoming electric vehicles (EV) manufacturing facility in Tamil Nadu. The announcement comes after the mobility firm announced a Rs 2,400-crore deal with the Tamil Nadu government last month to set up its first factory in the state.

The manufacturing factory will generate almost 10,000 jobs and have an initial capacity of 2 million units a year, Ola said in a statement. 

It will serve as Ola’s global manufacturing hub, catering to its customers in India as well as key markets across Europe, the UK, Latin America as well as Australia and New Zealand, it added.

Ola’s factory will have almost 5,000 robots deployed across various functions. The mobility firm will have access to Siemens’ integrated digital twin design and manufacturing solutions. This will help digitalise and validate product and production ahead of actual operations.

“This will be our global hub and set a benchmark in quality, scale and efficiency, demonstrating India’s capability to build world class cutting-edge products. We look forward to bringing this factory online in the coming months and putting our products in the hands of customers,” said Bhavish Aggarwal, chairman and group chief executive, Ola.

The factory will be artificial intelligence-powered with Ola’s proprietary AI Engine and tech stack continuously self-learning and optimising every aspect of the manufacturing process. 

The entire material handling at Ola’s factory will be fully automated for maximum efficiency, right from raw materials, to material movement inside the factory, to storage and the finished scooter rolling off production lines and being loaded onto trucks.

“Siemens is proud to contribute to Ola’s vision of creating a factory of the future using its automation and digitalisation expertise. This will ensure the highest levels of productivity and quality while enabling an agile and flexible production process,” said Sunil Mathur, managing director and chief executive, Siemens India.

Ola’s upcoming scooter is the first in its range of electric vehicles. The factory in Tamil Nadu will produce Ola’s upcoming line of two-wheelers, starting with the e-scooter. 

The scooter has seamless design and a unique removable banana battery that is easy to carry and can be charged anywhere. It is also equipped with intelligent software that boosts consumer experience. The company plans to bring many such design and software innovations to its entire two-wheeler product portfolio. Ola was last valued at $6 billion.