Ola Electric Stops Production of E-scooters at its Tamil Nadu Plant

Updated on: December 1, 2023

Ola Electric's problems did not go away, sales fell, another senior official resigned

Ola Electric: Electric vehicle maker Ola Electric has suspended production of its electric scooters at its Krishnagiri plant in Tamil Nadu for nearly a week. The company has piled up 4,000 electric scooters in its future factory.

Ola Electric: Ola-Future-Factory — Ola-Future-Factory-2W

However, the company cited annual maintenance and installation of new machines as the reason for shutting down the manufacturing plant, reported the Economic Times.

It has been less than a year since Ola started production at its Future Factory in Krishnagiri, Hosur district, Tamil Nadu. Trial production began in October and regular production in December.

“Like most auto companies that do annual maintenance at their factories, we did. At no time shall this product be deemed discontinued. Therefore, this clarification (information) is false,” an Ola spokesperson was quoted as saying by ET.

Although Ola has clarified that it was a brief hiatus, details of the suspension period as well as daily production or booking numbers have not been shared.

Ola Electric vehicle registration

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Significantly, Ola Electric’s two-wheeler electric vehicles have taken a hit in the last two months as vehicle registration numbers have dropped sharply in May-June following reports of fire incidents.

Its vehicle registrations fell over 27% to 9,255 units in May from 12,703 units in April and registrations fell over 36% to 5,883 units in June.

Earlier this month, Ola Electric said it will invest $500 million to set up a Battery Innovation Center (BIC) in Bengaluru, an R&D facility for electric vehicle (EV) battery cells.

Ola Electric Battery Innovation

“Electric mobility is a high growth sector that is R&D intensive. Ola’s Battery Innovation Center in Bangalore will be a cornerstone for core cell tech development and battery innovation outside of India to the world,” Agrawal, Founder and CEO, Ola Electric, said in a statement.

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