World's largest EV car manufacturing Facility : Why Ola chose Tamil Nadu?
The biggest electric vehicle facility in the world, according to electric vehicle manufacturer, will be established in Tamil Nadu. Karnataka, Andhra Pradesh, Telangana, Gujarat, and Uttar Pradesh were the only other five states competing, but Tamil Nadu received the funding.
The investment of 7,614 crores to producein Krishnagiri district, which currently produces electric two-wheelers, was attributed by the Tamil Nadu government to its updated Electric Vehicles Policy.
Thangam Thennarasu, the state's minister of industries, characterized the heavy investment as evidence of the company's faith in Tamil Nadu. He added that in addition to land subsidies and power advantages, the state also provided the manufacturer ofthe alternative of financial or transition subsidies. The state provided conveniences to battery producers and consumers in addition to the original equipment producers to foster an environment. For example, a Rs. 10 lakh subsidy will be given to consumers of such public EVs. The electric car policy in Tamil Nadu has been updated to meet the most recent demand. Investors benefited more because of this. To support the EV industry, the Tamil Nadu state has announced its electric vehicle strategy 2023, which seeks to attract investors of 50,000 crores and create 1.50 lakh employment.
Now Ola will have the world's largest four-wheeler manufacturing facility in Tamil Nadu. But Why does Ola rely so much on Tamil Nadu for its manufacturing plants? Let's look into it.
Now, Tamil Nadu is at the top of the Indian automotive sector. With its world-class production capacity, Tamil Nadu, one of India's most industrialized states, can attract any form of automotive-based industry. In addition, Tamil Nadu is the only Indian state with four international airports and four of the country's main shipping ports. 35% of India's automotive parts manufacturing and about 30% of four-wheeler production are produced in TN. Around 20 OEMs that cover all car sectors, over 350 automotive parts manufacturers, and more than 4,000 SMEs classified as Tier-IV are currently based in Tamil Nadu.
90% ofnow on the market travel at 25 mph. Ola predicts a huge market potential for its high-end EV scooters. According to a study by KPMG-CII (Confederation of Indian Industries), the percentage of electric vehicles in use within the next ten years might reach 30%. In the following ten years, that would raise revenues from 1% market dominance to 30%.
In addition to TN government programs and subsidization for EV production, there are also established manufacturing estates with the required infrastructure, such as undisrupted water and electricity supply, customs duty waivers, land at a subsidized cost, and quick and straightforward single-screen authorization for the development of production hubs. The ample personnel and transportation infrastructure supportinvestment in TN Hosur, which is situated at the border between Bangalore and TN. Hosur is a major industrial city that is home to numerous automotive and manufacturing businesses. The state has the technical ability to generate 4.82 million two-wheelers and 1.71 million automobiles annually. All of these persuade OLA to locate the largest EV production facility in the world in Tamilnadu.
The automotive manufacturer would produce 1,50,000 vehicles annually, adding slightly more than 3,000 jobs. According to a report published by Ola on Friday, the hub would be utilized to deliver electric two-wheelers, automobiles, and battery cells to host vendor and distributor facilities.