Fund aims to strengthen India's electric vehicle supply chain and boost domestic manufacturing as national EV sales exceed 2 million units in 2024.
19 May 2025 | 913 Views | By Shruti Shiraguppi
Folks Motor, a leading player in India's xEV (retrofit) industry, has secured ₹100 crore in the first close of its newly launched "Folks Funds," an Alternative Investment Fund (AIF) Category II with a target corpus of ₹500 crore. The company expects to reach the full funding target by the end ...
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Folks Motor, a leading player in India's xEV (retrofit) industry, has secured ₹100 crore in the first close of its newly launched "Folks Funds," an Alternative Investment Fund (AIF) Category II with a target corpus of ₹500 crore. The company expects to reach the full funding target by the end of 2025, with investments focused on strengthening India's electric vehicle supply chain and enhancing local manufacturing capabilities.
The fund, described as India's first ESG-focused investment vehicle dedicated to EV supply chains, will allocate a significant portion toward developing "The Blue IP," an xEV-focused warehousing and industrial park in Sonipat, Haryana. This facility represents India's first industrial park specifically designed for the electric vehicle ecosystem, providing infrastructure for manufacturing and logistics operations.
Strategic investments will target key areas including powertrain systems, energy storage, Electronic Manufacturing Services (EMS), and system integration. According to the company, these investments align with government policies promoting domestic manufacturing, with the objective of achieving at least 50% local value addition.
Nikhil Anand Khurana, MD & CEO of Folks Motor, stated: "Our vision with Folks Funds is to redefine India's position in the global EV supply chain. With the Blue IP and our strategic partnerships, we are not just building infrastructure—we are building future-ready ecosystems for sustainable manufacturing. This fund is a step towards Atmanirbhar Bharat, enabling domestic innovation and job creation while attracting global interest in Indian-made EV components. Besides this, the fund will also focus on retrofitment technologies, which are critical to extending the lifespan of existing vehicles and reducing operational costs for commercial fleets. This dual approach supports both green mobility and economic efficiency."
The announcement comes as India's EV market experiences significant growth, with sales exceeding 2 million units in 2024, representing a 25.4% year-over-year increase. However, the company notes that localization levels for critical components such as motors and controllers remain at just 30-40%, highlighting substantial opportunities for domestic manufacturing expansion.
In addition to its Sonipat plans, Folks Motor reports ongoing discussions with state governments in Telangana and Karnataka to expand its investment footprint. These states have actively promoted EV adoption and infrastructure development.
The EV sector is projected to create 5 million direct and 30 million indirect jobs by 2030, according to data cited in the announcement. Folks Funds aims to contribute to this growth by supporting companies integral to the EV supply chain while also advancing retrofitment technologies that extend the lifespan of existing vehicles.