Ola Electric, the Bengaluru-based company, is planning to raise Rs 2,000 crore through a stake sale in its subsidiary, Ola Cell Technologies (OCT). OCT currently operates a lithium-ion cell manufacturing plant in Tamil Nadu with a capacity of 1.5 GWh, aiming to scale it up to 6 GWh by the end of the financial year.
This move by Ola Electric comes amid decreased sales volumes and a decline in market share. The company has faced challenges related to consumer complaints regarding vehicle quality and after-sales service, prompting this strategic shift to focus on strengthening its battery production capabilities.
By investing in expanding its lithium-ion cell manufacturing capacity, Ola Electric aims to enhance its supply chain efficiency and potentially address some of the quality concerns raised by consumers. This initiative demonstrates the company’s commitment to improving its core technology infrastructure to meet the evolving demands of the electric vehicle market.
Source: Tech-Economic Times