Tata Motors Finance Solutions has extended a loan of `40 crore to Ola Fleet Technologies, the cab-leasing subsidiary of Ola, according to documents sourced from business signals platform paper.vc. The loan amount will be used for the purchase of Neo electric vehicles by the company on commercial registration, the documents showed.
Coimbatore-based automotive component manufacturer Jayem Automotives is developing an electric version of Tata Nano. The rebranded Nano has been granted government subsidy of `1.24 lakh that puts electric vehicle in the same category as Mahindra e20 and Tata Tigor EV. Reportedly, 400 units of Neo will be supplied to Ola for its Hyderabad fleet.
“After including the government subsidy and bumping up the price of the Nano to incorporate all the fancy stuff that the Neo will likely incorporate (bluetooth, power windows, air-conditioning, EV stack), it looks like that the Ola order is still much larger than the earlier reported number of 400 Neos. It seems more like between 1,000 and 1,300 Neos ready for rollout as Olas,” the analysts at paper.vc said.
Started in 2015, Ola’s cab-leasing service allows drivers to rent taxis at cheaper interest rates. In 2017, Ola Fleet Technologies is understood to have secured a `1,000-crore term loan from
Yes Bank to purchase commercial vehicles to add to its fleet. The tenure of the loan provided by Tata Motors Finance Solutions is 60 months. The agreement was executed on March 28, the documents showed. Ola aims to bring one million electric vehicles on Indian roads by 2022. Ola Electric Mobility, which is currently running several pilots to deploy electric vehicles and charging solutions, had raised Rs 400 crore in a funding round led by US-based Tiger Global Management and Matrix India in March.