Ola announced on Monday an agreement with the Tamil Nadu government in India to establish what the company describes as the “world’s largest scooter manufacturing facility” within the South Indian state, marking a renewed focus for the ride-hailing company on electric vehicles.

The Indian ride-hailing firm, supported by SoftBank, stated it will allocate approximately $327 million to the construction of this factory. The company projects the facility will generate nearly 10,000 employment opportunities and possess an initial annual production capability of 2 million electric vehicles.

This development coincides with Ola’s intentions to introduce and broaden the availability of its two-wheeled electric vehicles in multiple markets over the coming two quarters, as indicated by an informed source. Ola Electric, which became an independent entity last year, completed the acquisition of Etergo, a company based in Amsterdam, earlier this year. Etergo possesses a range of scooters featuring swappable, high-energy batteries capable of delivering a range of up to 240 km (149 miles). The company intends to replicate the production of comparable vehicle models, according to the source.

Ola initiated its two-wheeler service, mirroring the cab service model where drivers transport passengers, in 2016 and has since provided income opportunities for over 300,000 individuals in India. As one of India’s most highly valued startups, Ola has significantly invested in two-wheeler transportation in recent years to extend its service coverage to smaller cities and towns throughout the nation. (Compared to four-wheeled vehicles, two-wheelers and three-wheelers provide a more economical transportation option for customers and navigate congested traffic more efficiently.)

According to a company statement, the new factory is expected to strengthen India’s electric vehicle infrastructure and serve customers in regions including Europe, Asia, and Latin America.

“We are pleased to reveal our plans for the world’s largest scooter factory. This represents a substantial achievement for Ola and a moment of national pride as we make significant progress toward our goal of transitioning the world to sustainable mobility solutions for both shared and personal transportation. This facility will be among the most technologically advanced manufacturing plants globally. It will demonstrate India’s capabilities and expertise in producing high-quality products for the international market,” stated Bhavish Aggarwal, Chairman and Group CEO of Ola, in a released statement.