Japan's Mitsui makes second investment in Pune-based EV startup EKA

EKA (Pinnacle Mobility Solutions), a rapidly growing electric vehicle startup based in Pune, India, has announced that Japanese business group Mitsui & Co has executed a second tranche investment as part of an initially announced phased investment plan. This strategic infusion of capital will support EKA Mobility's continued expansion and innovation in the electric vehicle (EV) sector.

In December 2023, EKA entered into a strategic long-term partnership with Mitsui and VDL Groep, a leading Dutch technology and manufacturing company. The partnership included joint investments of USD 100 million (approximately Rs 850 crores) in phases, as well as equity and technology cooperation to create a leading global OEM in India.

Under this cooperation, EKA Mobility will receive significant investments from Mitsui and technological support from VDL Groep. VDL Bus & Coach, a subsidiary of VDL Groep and a frontrunner in electric buses and coaches in Europe, will support EKA Mobility through a transfer-of-technology agreement to produce electric buses in India for the domestic market.

EKA, headquartered in Pune, has developed a range of electric buses in 7-meter, 9-meter, and 12-meter categories, as well as intercity coaches and a range of electric light commercial vehicles.

EKA is also one of the commercial vehicle manufacturers approved under the Government of India's Auto PLI (Production-Linked Incentive) policy, which aims to boost domestic manufacturing and attract foreign investment in the automotive sector.

The company's order book has grown significantly, with over 1,000 electric buses and 5,000 electric light commercial vehicles on order. Given the wide acceptance of EKA buses in Delhi and Greater Mumbai, the company expects a surge in electric bus orders in the coming months and is well-positioned to capture and fulfill these orders.

Earlier this year, Mitsui's maiden tranche investment enabled EKA to establish one of the largest R&D centres in India for electric commercial vehicles, focusing on new product development and expanding its export footprint. The second tranche will further support EKA Mobility's manufacturing capabilities, accelerate new product development, expand market reach, and provide working capital to strengthen the company's financial base, optimize supply chain, and support market expansion initiatives.

As the demand for sustainable transportation solutions grows in India and globally, EKA Mobility is poised to play a pivotal role in shaping the future of electric mobility.