Tata Motors Finance extends Rs 40 crore loan to Ola’s cab-leasing subsidiary

In another push to green technology, Ola Fleet Technologies, a subsidiary of cab aggregator Ola, has received a loan of Rs 40 crore from Tata Motors Finance Solutions for the purchase of Tata Nano-based Jayem Neo electric vehicles by the company on commercial registration, The Financial Express reported.

Ola is getting new electric vehicle models for its fleet in Hyderabad. Jayem Automotives, a Coimbatore-based automotive component manufacturer is working on an electric version of Tata Nano. This new model has also received the government subsidy of Rs 1.24 lakh, which puts this EV in the same category as Mahindra e20 and Tata Tigor EV.

The report said that Ola is getting 400 units of Neo. This loan is for a period of 60 months.

“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,” analysts at paper.vc told the paper.

Ola Fleet Tech was established in 2015. Its services help drivers rent taxis at lower interest rates. In 2017, the company reportedly secured a Rs 1,000 crore term loan from Yes Bank to purchase commercial vehicles.

Ola aims to bring one million electric vehicles in India by 2022. Ola Electric Mobility, another subsidiary of the cab company, is testing many electric vehicles and charging solutions. Tiger Global Management and Matrix India recently invested Rs 400 crore in it.