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EKA Mobility secures $100 mn Investment for EV Manufacturing in India
Industry News- Jan 03,24
Under the agreement, Mitsui and VDL will jointly invest approximately Rs 830 crore in EKA Mobility, acquiring 'significant' minority stakes. The funds will be allocated to expand research and development efforts and increase manufacturing capabilities.
EKA Mobility, based in Pune, has entered into a strategic collaboration with Japan's Mitsui & Company and the Netherlands-based VDL Groep to manufacture electric buses and light commercial vehicles in India.
Under the agreement, Mitsui and VDL will jointly invest $100 million (approximately Rs 830 crore) in EKA Mobility, acquiring 'significant' minority stakes. The funds will be allocated to expand research and development efforts and increase manufacturing capabilities.
Having inaugurated a production facility in Pune earlier this year, EKA Mobility aims to escalate production capacity in the initial phase to deliver 5,000 electric buses and 6,000 light commercial vehicles annually. This capacity will later be further expanded to meet market demand, targeting production volumes of 12,000 electric buses and commercial vehicles each in the medium term.
Sudhir Mehta, Founder & Chairman of EKA Mobility, expressed to ET that this partnership represents one of the most substantial collaborations in India's new mobility sector. It brings together the expertise of three prominent automotive conglomerates from Asia and Europe to expedite the development and adoption of innovative electric mobility solutions.
As part of the collaboration, VDL Bus & Coach, a subsidiary of VDL Groep and a leading European manufacturer of electric buses and coaches, will transfer technology to support EKA Mobility in producing electric buses for the Indian market. Mitsui will provide assistance for exports to select emerging markets and help establish systems and processes.
EKA Mobility aims to achieve a turnover of $2 billion in the next five years with this partnership. Mehta emphasised the enormous growth potential in India's public transportation sector, especially with the government's focus on promoting the transition to e-mobility.
The company already has orders for 700 electric buses and 5,000 electric light commercial vehicles, which will be manufactured in India at EKA's proposed state-of-the-art facilities in Madhya Pradesh and Maharashtra. The collaboration also intends to enhance the sourcing of EV components from India.
Rolf-Jan Zweep, CEO of VDL Bus & Coach, sees numerous opportunities in India, recognising it as a promising growth market. The cooperation is expected to yield synergy benefits, particularly in procurement and development.
EKA Mobility is an approved commercial vehicle manufacturer under the Champion OEM Scheme and EV component manufacturing scheme of the Auto PLI policy. Nobuyoshi Umezawa, GM of Mobility Business Division at Mitsui & Co India, highlighted the collaborative effort's contribution to "Make in India" and the goal of exporting EKA's products to overseas markets through Mitsui's global network. Mitsui & Company, a global trading and investment company, operates in more than 60 countries, while VDL Groep, with a revenue of Euro 5.75 billion, has over 100 operating companies spanning various industries.
Source: Indiatimes
EKA Mobility
Mitsui & Company
VDL Groep
Make in India
Japan
Netherlands
EKA Mobility
Sudhir Mehta
VDL Bus & Coach
Rolf-Jan Zweep
Nobuyoshi Umezawa
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