Indian Economy News

Ola Electric infuses US$ 214 million in EV and cell manufacturing

Ola Electric Mobility has approved an investment of Rs. 2,000 crore (US$ 214 million) into its subsidiaries focused on electric vehicle (EV) and battery cell manufacturing, as the company looks to strengthen localisation and deepen vertical integration across its operations. The investment, cleared by the company’s board, will be infused into Ola Cell Technologies and Ola Electric Technologies over a period ending May 2027. The move is aimed at enhancing manufacturing efficiency, reducing dependence on external suppliers and improving cost competitiveness in India’s rapidly evolving EV market. According to company disclosures, the subsidiaries will continue to remain fully owned by Ola Electric after the capital infusion.

The latest investment comes amid intensifying competition in the electric two-wheeler segment, where established players such as Ather Energy, Bajaj Auto and TVS Motor have expanded their market presence. Ola Electric has increasingly focused on battery technology and domestic cell manufacturing as part of its long-term profitability strategy. Reports indicate that the company has already invested around Rs. 5,300 Crore (US$ 566 million) across manufacturing, battery technology, cells, and research and development initiatives. The company is also scaling up production capacity at its Tamil Nadu-based lithium-ion cell manufacturing facility, while continuing efforts to automate operations and launch more affordable electric mobility products for the Indian market. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.