[TusharK]

Ola has announced that construction on its 2-wheeler factory has commenced and that the first phase of production is expected to begin in the next few months.



In December 2020, the company had signed a Rs. 2,400 crore MoU with the Tamil Nadu government. An estimated more than 10 million man-hours have been planned to bring the factory up in record time.

Once complete, the 2-wheeler mega-factory will be the world's largest. Spread over 500 acres, it will have an initial capacity of 2 million units per year in the Phase 1 alone.

It will become the global manufacturing hub for Ola's range of electric scooters and 2-wheelers and besides India, it will serve international markets including Europe, UK, Latin America, Asia Pacific, Australia and New Zealand.

The factory is expected to create 10,000 jobs. It will incorporate Industry 4.0 principles, and will be powered by Ola’s own proprietary AI Engine and tech stack that will be integrated into all its systems. The factory is also expected to be the country’s most automated, with about 5,000 robots and automated guided vehicles.

The company will ensure the conservation of the green belt in the area by preserving and transplanting the trees on site. It plans to have a large forest area within the site and reuse the excavated soil and rocks within the factory.

Ola plans to launch its range of electric scooters in the coming months.

https://www.youtube.com/watch?v=6sQWQ2Zzk-c

Link to Team-BHP News

[Sudarshan42]

Incredible. Can't wait to see their products, hope the initial batch is built from the ground up like Ather and not a bunch of rebranded Chinese knock-offs (which is unfortunately all too common with other electric mobility firms like Okinawa, Kabira Mobility etc).

[2000rpm]

Ola has gone big on the RnD aspect as well. They have a 400 odd RnD team already in the EV space! (non-confirmed)

Will be great to have a Tesla for 2 wheelers from India!

[sri_tesla]

Originally Posted by Sudarshan42

Incredible. Can't wait to see their products, hope the initial batch is built from the ground up like Ather and not a bunch of rebranded Chinese knock-offs (which is unfortunately all too common with other electric mobility firms like Okinawa, Kabira Mobility etc).

Ola has acquired dutch startup Etergo last year. Etergo already did most of the R&D work for scooter named Appscooter. They already built many prototypes for the same. They were unable to expand from prototype to manufacturing stage due to a cash crunch.

Glad to see newcomers entering the EV space with big production plans. Economies of scale are very important to bring down the prices of EVs. I had big hopes on Ather after the 450 release, but the huge price increase for 450X made it a niche product relatively. Traditional companies like Bajaj and TVS are very slow and too conservative in ramping up production. Bajaj even stopped bookings for Chetak while both Chetak and iQube are only available in just 2 cities even after more than a year of launch.

I really hope Ola will give their first scooter a wider release at a decent price. All the best.

[The Brutailer]

I don't understand this strategy?! Won't manufacturing scooters (i.e. personal vehicles) go against (and harm) its core business (ride-sharing)?

Does Ola have low confidence in its own business?

[am1m]

Originally Posted by sri_tesla

Economies of scale are very important to bring down the prices of EVs. I had big hopes on Ather after the 450 release, but the huge price increase for 450X made it a niche product relatively. I really hope Ola will give their first scooter a wider release at a decent price.

Absolutely! I'm looking for my first escoot and while I like the Ather (and a good friend even works for the company and was involved in the design of one of the components) it's neither here nor there for me personally. I'm looking for a commuter to replace my ICE commuter bike and the 450x is too expensive for a commuter bike. And as far as paying that price for an 'exciting' bike, I mean any 200-250cc ICE bike in the Indian market right now will provide a more exciting riding experience. So till really performance-oriented ebikes come out, personally I think a mass-produced, cost-effective ebike (and not just a re-branded Chinese import) is what we need. Hope these guys can do it. I thought the eChetak would be the one from Bajaj, but that seems to be just dragging on, have not even seen one on the roads yet.

[Sudarshan42]

Originally Posted by The Brutailer

I don't understand this strategy?! Won't manufacturing scooters (i.e. personal vehicles) go against (and harm) its core business (ride-sharing)?

Does Ola have low confidence in its own business?

Diversification. No reason to stick to a single business model, they can spin-off a new wing if they find it to be a high-growth market, which electric scooters will be.

An Activa 125 DLX goes for almost a lakh rupees nowadays. Contrast that with a Bajaj Chetak, whose base Urbane model goes for 1.11L, a difference of only about 12k. Over a long enough period, with the money saved on fuel costs and ICE maintenance, this will more than pay for itself. If Ola can bring the initial cost of ownership down even further with scale, then this is a no-brainer of a decision for consumers (unless their need is over 60km a day, which is unlikely on a scooter).

[saikarthik]

Originally Posted by 2000rpm

Ola has gone big on the RnD aspect as well. They have a 400 odd RnD team already in the EV space! (non-confirmed)

Will be great to have a Tesla for 2 wheelers from India!

Yes, they have a decent R&D department and were on big ambitions even to design and launch electric public transport vehicles (busses). They were hunting for good skill with very high offers. But somehow I saw a lot of my acquaintances join OLA and leave it in short term citing strong roadmap visibility and other unknown reasons.

I wish OLA does well and we will get some good competition to Ather in mass market e-scooter space.

[shortbread]

Originally Posted by The Brutailer

I don't understand this strategy?! Won't manufacturing scooters (i.e. personal vehicles) go against (and harm) its core business (ride-sharing)?

Does Ola have low confidence in its own business?

No it does not.

Anyone who prefers a ride sharing/cab hiring app for their transportation needs are not going to give up and buy their own scooter simply because OLA makes it! They will continue as it is, because if riding their own two wheelers were their preferred choice, they'll have one already irrespective of who the manufacturer is.

OLA is aiming for two wheeler riders who do not use their services currently. It's simply diversification.

[digitalnirvana]

This could be Ola's Jio moment. Reliance set up a greenfield pan India 4g network in record time and with incredible focus on program execution. I was lucky to witness part of it from up close. They promised dreams which others scoffed at, but they delivered and how!

If Ola can emulate RIL with a similar hyperfocused top-down execution strategy along with an ambitious & inspiring vision, they'll rule the eV sector in India for at least half a decade.

What I already like:
1. Bulk of the growth of EVs in India and South Asia will be from two wheelers. If Ola can tap into Asean too, nothing like it
2. They're building BIG. Hitting a critical mass FAST is very important. We don't want a great product that has a 10 month waiting period. Tesla struggled with this early on
3. Tamil Nadu is the right location. It's our Detroit and I hope Ola can get its supply chain ancillaries and OEMs set up in close proximity

I really hope they succeed. If they get it right this will encourage more mega projects in our country. We do desperately need gigafactory scale engineering projects here.

[aashishnb]

Originally Posted by TusharK

Once complete, the 2-wheeler mega-factory will be the world's largest. Spread over 500 acres, it will have an initial capacity of 2 million units per year in the Phase 1 alone.

Originally Posted by The Brutailer

I don't understand this strategy?! Won't manufacturing scooters (i.e. personal vehicles) go against (and harm) its core business (ride-sharing)?

Does Ola have low confidence in its own business?

Here's my take on this strategy:
Ola has a startup mentality and a private equity lineage. Therefore, the thought behind this is, in all likelihood, radical.

India sells approx. 17-20 mn. 2-wheelers p.a., of which approx. 5 mn. are scooters. Therefore, having 2 mn. vehiclce p.a. capacity just in Phase 1 is a just a lot of capacity for a product that is not even launched. Even considering exports, this is still a lot considering the future expansion potential.

Therefore, I think, they'll try and become a 'service provider' / 'assembler' for everyone else who cannot afford to have a full fledged plant for low volumes - just look as the way car companies are closing plants due to lack of volumes and therefore non-viability.

Perhaps, they could even lease have multiple assembly lines and lease an entire assembly line to a single brand. This way, they could manufacture for sale in India but also to export to their other markets.

[pugram]

Originally Posted by am1m

Absolutely! I'm looking for my first escoot and while I like the Ather (and a good friend even works for the company and was involved in the design of one of the components) it's neither here nor there for me personally. I'm looking for a commuter to replace my ICE commuter bike and the 450x is too expensive for a commuter bike.

Ather is too costly. Checkout the ones from Okinawa and Bgauss. Hero Electric also has a few models.

Bajaj and TVS don't understand that a large number of folks are fence sitters awaiting a good model from a known manufacturer with strong sales and support. I understand the limited sales as a trial basis. But it is high time they introduced it in all their dealerships across the country.

Maybe OLA will build and lease out these e-scooters to their delivery partners

[sajaijayan]

Fantastic initiative by OLA. Hats off for the risk they are taking. This is the attitude that is required if we need to transition to Ev`s. None of the large Manufacturer`s seem to have this attitude and they are just playing safe.
The scale will ensure the prices remain very competitive and I am sure they will target not just normal customers, but logistics companies, delivery companies etc.
Wishing them all the very best and believe this is just the boost needed to transition the market. If done well, in 3 years majority scooters sold in India would be electric.

[Gansan]

Post lockdown, I am riding/driving 52 km everyday to drop and pick up my wife from office, six days a week. About 1200 km a month. Even my Splendor at 60 Kmpl will consume around Rs 1900 worth of fuel per month. An Ather 450 may probably cost about Rs 300 to cover the same distance, a straight saving of Rs 1600 a month, about Rs 19k a year, if I buy it for cash.

So it is a no brainer for me to go the EV way, if my two wheeler needs a replacement now. But to replace it deliberately for this purpose, I will have to consider the oppurtunity cost of replacement as well. So I am continuing with the Splendor. People who are in the market for a new vehicle, should definitely consider the EVs first.

[mvadg]

I am wondering if EV manufacturers should be giving buyers a "range guarantee", for say, 10 years. Though there's an ARAI range, what happens after a year of use? 3 years? 5 years?
I doubt that the average user of an EV understands how battery life and battery performance deteriorate over time and use. How many understand the hefty cost of replacing the battery? I've already seen LED lamps become unusable before the end of their warranty period, but not fail. Many LED bulbs failed before their much vaunted 15 year life - of course, if most people are like me, the bill has long been thrown away and manufacturers are just laughing all the way to the bank.