Ola Electric will begin production of its first electric battery cell manufacturing facility in 2023-24, in an attempt to reduce dependence on high-cost imports.
The company’s first NMC (Nickel Manganese Cobalt) battery cell 2170 cell will be ready by the end of this year or early next year, company officials informed Autocar Professional.
Ola Electric's Chief Business Officer Ankush Aggarwal confirmed to Autocar Professional that the company is busy working on opening India's largest battery and cell manufacturing plant in the coming months.
"We intend to have the facility ready by the end of the year and after that, our cell and battery production will begin," Aggarwal stated.
Currently, India's electric vehicle manufacturers rely on lithium-ion battery cells from China, Taiwan, Japan, and Korea, while LG Chem in South Korea supplies the company's cells to the country.
Ola Electric's 115-acre cell factory will initially have a capacity of 5 GWH, as per company sources, which can be scaled to 100 GWH to manufacture high-nickel cylindrical cells with an energy density of 300 GWh.
The EV maker, which has sold over 2 lakh electric scooters to date and has cornered a 40% market share of India's fledgling EV market in June 2023, had previously announced a combined investment of Rs 7,614 crore to build one of the most advanced and largest cell manufacturing facilities with a production capacity of 10 gigawatt-hours per year.
With the government tapering down the FAME II subsidy from 40 percent to 15 percent, it has become imperative for larger players like Ola to accelerate localisation to reduce cost and retain cost competitiveness.
According to the Vahaan Portal, Ola Electric had registered more than 18,000 units by July 1, 2023.
Gearing up for multiple product launches
Apart from the strong acceptance from the major metropolitan cities, Ola is banking on Tier-1 and Tier-II cities with its upcoming S1 Air which is likely to be launched by end of this month.
Aggarwal assures that it will be a "big ticket surprise for the consumer and trade. Although a two-wheeler will be there, you will see multiple products being launched on that day."
When queried if there is a potential of introducing an electric motorcycle, Ola Electric's Chief Business Officer said that “the company sees a massive opportunity in electric motorcycles, however, there is a need for a correct product in that segment, which Ola intends to bring to the market."
Within the motorcycle range, the company will be eyeing premium motorcycles, sports, and cruiser bikes and also focus on adventure electric motorcycles, sources informed Autocar Professional.
He stated that the two-wheeler market in India has not yet been completely captured. "With the total cost of ownership in favour of electric two-wheelers, we are betting big on the higher transition to electric in the months ahead, which you will see, " Aggarwal said.
Ola Electric currently offers three models: the S1 Air, S1, and S1 Pro. The S1 Air will initially be a 3kWh battery-powered vehicle with an IDC range of 125km and a top speed of 85 kmph, Aggarwal indicated.