EKA Mobility, based in Pune, has entered a strategic partnership with Japan’s Mitsui & Company and Netherlands-based VDL Groep to manufacture electric buses and light commercial vehicles in India. The collaboration involves Mitsui and VDL jointly investing $100 million (approximately Rs 830 crore) in EKA Mobility to acquire significant minority stakes. The funds will be utilized to scale up research and development activities and enhance manufacturing capacity.
EKA Mobility, which inaugurated a production unit in Pune earlier this year, aims to expand its production capacity to roll out 5,000 electric buses and 6,000 light commercial vehicles annually in the first phase. This capacity will be further increased to manufacture 12,000 electric buses and commercial vehicles each in the medium term, based on market demand. According to Sudhir Mehta, Founder & Chairman of EKA Mobility, this partnership is one of the largest and most significant in the new mobility segment in India. It brings together the strengths and expertise of three leading automotive conglomerates in Asia and Europe to accelerate the development and adoption of innovative electric mobility solutions. Mr Mehta says, “Under the cooperation, EKA Mobility will receive strategic investments from Mitsui and VDL Groep, to develop a range of electric buses and light commercial vehicles for last-mile connectivity. These will be made locally, for sale in the country as well as in markets in Africa, Asia and Latin America.”
As part of the collaboration, VDL Bus & Coach, a subsidiary of VDL Groep and a prominent European manufacturer of electric buses and coaches, will support EKA Mobility by transferring technology to produce electric buses in India for the Indian market. Mitsui, on its part, will provide support to EKA for exports to select emerging markets and assist in the establishment of systems and processes. EKA Mobility is anticipating a turnover of $2 billion in the next five years with this strategic partnership. The company already has an order book for 700 electric buses and 5,000 electric light commercial vehicles. These vehicles will be designed and manufactured in India at EKA’s proposed state-of-the-art manufacturing facilities in Madhya Pradesh and Maharashtra.
Mr Mehta further elaborates, in this context, “India has 1-1.2 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.” The collaboration also aims to scale up the sourcing of electric vehicle components from India. Rolf-Jan Zweep, CEO of VDL Bus & Coach, sees many opportunities in India, which is a promising growth market. The cooperation is expected to bring synergy benefits, especially in the areas of procurement and development. EKA Mobility is approved under the Champion OEM Scheme and EV component manufacturing scheme of the Auto PLI (Production Linked Incentive) policy. Mitsui & Company is a global trading and investment company with a presence in over 60 countries. VDL Groep, with a revenue of Euro 5.75 billion, operates across more than 100 companies and spans various industries, including technology, mobility, energy, Infratech, and foodtech.
Nobuyoshi Umezawa, GM of Mobility Business Division in Mitsui & Co. India, stated, “Through the cooperation of EKA, VDL, and Mitsui, we aim to contribute to ‘Make in India’ by leveraging EKA’s engineering and local network, and VDL’s technological capabilities. Furthermore, we would like to utilize Mitsui’s global network to export EKA’s products to overseas markets and contribute to creating eco-friendly societies.”Mitsui & Company, a global trading and investment firm, operates in over 60 countries. VDL Groep, with a revenue of €5.75 billion, encompasses over 100 operating companies involved in various industries such as technology, mobility, energy, Infratech, and foodtech.
