Folks Motor, a leader in India’s electric vehicle (EV) retrofit industry, has successfully raised ₹100 crore in the first close of its new “Folks Funds,” an Alternative Investment Fund (AIF) Category II, with an ambitious target of ₹500 crore. The company aims to achieve its funding goal by the end of 2025, with investments primarily focused on enhancing India’s EV supply chain and boosting local manufacturing capabilities.
This fund, which is India’s first ESG-focused investment vehicle dedicated to the EV sector, will allocate significant capital toward “The Blue IP,” an xEV-focused warehousing and industrial park in Sonipat, Haryana. This facility is set to become India’s first industrial park specifically designed for the electric vehicle ecosystem, providing much-needed infrastructure for manufacturing and logistics operations.
Strategic investments will target critical areas like powertrain systems, energy storage, Electronic Manufacturing Services (EMS), and system integration. These investments align with government policies aimed at boosting domestic manufacturing, with a goal of achieving at least 50% local value addition in key EV components.
Nikhil Anand Khurana, MD & CEO of Folks Motor, shared, “Our vision for Folks Funds is to transform India’s role in the global EV supply chain. With The Blue IP and our strategic partnerships, we’re not just building infrastructure—we’re creating sustainable, future-ready ecosystems. This fund is a step towards Atmanirbhar Bharat, fostering domestic innovation, job creation, and attracting global attention to Indian-made EV components. Additionally, the fund will focus on retrofitment technologies, which are vital for extending the life of existing vehicles and reducing operating costs for commercial fleets. This dual approach supports both green mobility and economic sustainability.”
The announcement comes at a time when India’s EV market is experiencing rapid growth, with sales exceeding 2 million units in 2024, reflecting a 25.4% increase year-on-year. Despite this progress, the company notes that localization of critical components such as motors and controllers remains at only 30-40%, underscoring the potential for significant growth in domestic manufacturing. In addition to its Sonipat facility, Folks Motor is in talks with state governments in Telangana and Karnataka, which have been actively promoting EV adoption and infrastructure development.
The EV sector is projected to generate 5 million direct jobs and 30 million indirect jobs by 2030, according to industry estimates. Folks Funds aims to contribute to this growth by supporting companies essential to the EV supply chain while also advancing retrofitment technologies that extend the lifespan of existing vehicles.
