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Last Updated : Mar 14, 2019 01:47 PM IST | Source: Moneycontrol.com

Ola in talks with automakers for custom-made electric vehicles: Report

Ola is drawing inspiration from China’s cab-hailing company, Didi Chuxing Technology, which entered into a similar agreement with Volkswagen AG.

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Cab-hailing startup Ola is in talks with top Indian auto companies to get custom-made electric and connected vehicles, in a bid to expand its involvement in eco-friendly modes of transport, as per a report in Mint.

The discussions are about the efficiency of the battery management systems to operate these vehicles on a mass scale. Sources said that Ola will provide inputs about the design and development of these vehicles, also known as "Special Purpose Vehicles", to some extent.

Moneycontrol could not independently verify the report.

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The cab company is drawing inspiration from China's top cab-hailing company Didi Chuxing Technology Co, which entered into an agreement with automakers like Volkswagen AG for custom-made vehicles.

Ola had been waiting for electric mobility technology and cars to get more affordable to enter the market. Its first stint in the EV market was with its project Mission:Electric with Mahindra & Mahindra, but it failed to take off in scale due to inadequate endurance of the vehicles.

Therefore, Ola now wants a say in making these vehicles with features it wishes to embed instead of just buying the cars from companies, one of the sources said. This will also give the company scope to go beyond cab services in the future.

Ola's electric mobility business arm, Ola Electric Mobility, raised Rs 400 crore from Tiger Global and Matrix India earlier this year. This was its first external fundraise for its electric mobility business. The company is committed to bringing one million electric vehicles in India by 2022.

The government is also pushing for green modes of transport, with a possible subsidy for buying electric vehicles under the second phase of its Faster Adoption of Hybrid and Electric vehicles (FAME) scheme.

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First Published on Mar 14, 2019 01:47 pm
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