Ola Electric has raised $100 million in long term debt for a period of 10 years from the Bank of Baroda to close the first phase of development of its Futurefactory that will be producing electric two-wheelers. The company had previously announced in December last year that it will be investing Rs. 2400 crore for setting up Phase 1 of the factory. The new facility located in Tamil Nadu is nearing completion and will soon commence production of the Ola electric scooter set to launch in India later this year.
Also Read: Ola Electric Scooter Features Teased; Launch Soon
Speaking on the investment, Bhavish Aggarwal - Chairman & Group CEO, Ola, said, "Today's agreement for long term debt financing between Ola and Bank of Baroda signals the confidence of the 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 and we are happy that Bank of Baroda has joined us in our journey."
Production trials of the upcoming Ola electric scooter will begin soon at the Ola Futurfactory
Sanjiv Chadha, MD & CEO - Bank of Baroda, said, "The government has brought in several policies to incentivise make-in-India and to enable India to become a global EV leader. Ola is leading from the front and we are delighted to partner with them for their EV business. The Ola Futurefactory will put India on the global EV map and we are proud to be associated with them."
The upcoming Ola Futurefactory is being built on a 500-acre site and will be able to produce 10 million vehicles per year once fully completed. Trial production under the first phase will begin shortly at the plant. The new plant will serve as the global EV production hub for Ola's upcoming scooter range and other two-wheelers. The company has also announced that it plans to set-up charging stations in over 400 cities to build the EV ecosystem.
