Pune-based EKA Mobility, which received a tranche of Rs 200 crore from Japan’s Mitsui & Company, is looking at commissioning a third manufacturing facility for rolling out electric buses and light commercial vehicles in the country the next 12-18 months.
This strategic infusion of capital will be deployed to meet capital expenditures and working capital needs, supporting EKA Mobility’s expansion in the fast-evolving electric vehicle space in the country, Sudhir Mehta, Founder and Chairman, EKA Mobility told ET.
EKA (Pinnacle Mobility Solutions) Mobility – one of the commercial vehicle manufacturers approved under the Champion OEM (Original Equipment Manufacturer) Scheme & EV component manufacturing scheme of the Rs 25,938 crore auto PLI policy – has a strategic partnership with Japan’s Mitsui and Netherlands-based VDL Groep to manufacture electric buses and light commercial vehicles.
As per the agreement inked in December 2023, Mitsui and VDL together will invest $100 million (approx Rs 850 crore) in phases, equity, and technology cooperation to create a leading global EV manufacturer in India. While VDL has already made its share of the investment, Mitsui has now completed payments for two of the three tranches agreed upon by the three companies.
Mehta said the company is in the final stages of being allotted land in Pithampur, Madhya Pradesh. EKA Mobility would have operational three manufacturing facilities across Maharashtra and Madhya Pradesh in by the end of the next calendar year.
“India has 1.6 buses/ 1000 people, which is even lower than 6-7 buses/1000 ppl in markets like Africa. The potential to grow is immense, especially given the focus the government has towards encouraging the transition to e-mobility in public transportation systems”, Mehta said.
EKA Mobility already has an order book for 1000 electric buses and 5000 electric light commercial vehicles. These will be designed & manufactured in India, at EKA’s proposed state-of-the-art manufacturing facilities in Madhya Pradesh and in Maharashtra.
Mehta informed, earlier this year Mitsui invested its maiden tranche in EKA which supported the company to establish one of the largest R&D centres in the country for electric commercial vehicles, new product development, and expanding its export footprints. The second tranche will help enhance EKA Mobility’s manufacturing capabilities, accelerate new product development, expand market reach, and provide working capital. The investment will strengthen the company’s financial base to support day-to-day operations, supply chain optimization, and market expansion initiatives.
“We are thrilled to deepen our partnership with EKA Mobility through the investment of this second tranche,” said Hiroshi Takeuchi — Deputy General Manager of Mobility Business Unit 1 of Mitsui. “EKA Mobility has demonstrated strong growth and innovation in the EV space, and we are excited to support their continued success. We look forward to utilizing Mitsui’s global network to promote exporting EKA’s competitive products to overseas markets. This investment aligns with Mitsui’s strategic focus on sustainable and forward-looking industries, and we are confident that EKA Mobility will play a pivotal role in the future of transportation.”
Mehta added overall the partnership is intended to bring together the strengths and expertise of three leading automotive conglomerates in Asia & Europe to accelerate the development and adoption of innovative electric mobility solutions.
As part of this partnership, VDL Bus & Coach (a subsidiary of VDL Groep and a leading European manufacturer of electric buses & coaches) will support EKA Mobility by transfer of technology to produce electric buses in India for the Indian market. Mitsui, on its part, will extend support to EKA for exports to select emerging markets as well as in the establishment of systems & process.
