EKA Mobility, Mitsui, VDL Groep pledge $100 mn for EV manufacturing in India

Indian EV maker EKA Mobility has announced strategic partnership with Mitsui & Co. of Japan and VDL Groep  of Netherlands. The long-term alliance envisions to establish a global OEM for electric vehicles in India, with joint investment equity and technology cooperation. 

The company claims that this international cooperation marks a significant milestone in the evolution of the Indian automotive industry, propelling India toward becoming a global hub for sustainable transportation. The partners are planning for a joint investment of over $100 million (₹850 crores), according to their joint media statement. 

Dr. Sudhir Mehta, Founder and Chairman of EKA Mobility, commented on the development, "This partnership with Mitsui and VDL Groep represents a significant step toward making India a global hub for electric vehicle manufacturing. We are proud to join forces with such distinguished partners who share our vision of sustainable, profitable and efficient transportation."

Global trading and investment firm Mitsui & Co., Ltd. is set to make strategic investments in EKA Mobility, enabling the company to scale up its manufacturing operations and expand its product portfolio. The Japanese firm will also provide support to EKA for exports to select emerging markets as well as establishment of systems and process.

"Through the cooperation of EKA, VDL, and Mitsui, we aim to contribute to "Make in India" by leveraging EKA's excellent engineering and local network, and VDL's cutting-edge technological capabilities", said Nobuyoshi Umezawa, GM of Mobility Business Division in Mitsui & Co. India. "Furthermore, we would like to utilize our Mitsui's global network to promote exporting EKA's competitive products to overseas markets and contribute to creating eco-friendly societies", he added.

On the other hand, European e-bus maker VDL Bus & Coach, a subsidiary of VDL Groep, will support EKA Mobility by transfer of technology to produce electric buses in India for the Indian market. The company is already an investment partner of the Indian manufacturer. Rolf-Jan Zweep, CEO VDL Bus & Coach, expressed his delight with his company's enhanced collaboration with EKA.

"Although the basis of our high-quality development and manufacturing competences lie in north-western Europe, we see many opportunities in India, which is obviously a promising growth market. With this cooperation, we foresee especially many synergy benefits in the areas of procurement and development", he said.

EKA Mobility, a subsidiary of Pinnacle Industries limited, launched its first product 'EKA E9', a 9-metre pure-electric midi-bus, in India last year, followed by staff carrier and school bus iterations of the E9 and a hydrogen fuel-cell electric bus. The company is also entering the last mile delivery segment with its range of electric light commercial vehicle (e-LCVs) that are currently under development.

With over 500 electric buses and 5000 e-LCVs orders in the pipeline, the automaker claims to jack up its EV development and manufacturing base in the country. EKA Mobility is also an approved OEM under the Champion OEM Scheme and EV component manufacturing scheme of the Government of India's Auto PLI policy.