Mitsui has made a second tranche investment in EKA, reinforcing its commitment to the growing EV sector. This capital will be used for capital expenditures and working capital, supporting EKA Mobility’s expansion and innovation in the EV market. The investment also establishes a favourable valuation benchmark for EKA, reflecting its rapid growth.
In December 2023, EKA, Mitsui, and VDL Groep formed a strategic long-term partnership. This partnership included joint investments totalling USD 100 million (~INR 850 crores) in phases, focusing on equity and technology cooperation to create a leading global original equipment manufacturer (OEM) in India. Under this partnership, Mitsui provides significant investments, while VDL Groep, a Dutch technology and manufacturing company, offers technological support and equity partnership.
VDL Bus & Coach, a subsidiary of VDL Groep and a leader in electric buses and coaches in Europe, will transfer technology to EKA Mobility to produce electric buses in India for the domestic market.
Previous investments and achievements
Earlier this year, Mitsui’s initial investment enabled EKA to establish one of the largest R&D centres in India for electric commercial vehicles. This centre focuses on new product development and expanding export capabilities. The second tranche will enhance EKA Mobility’s manufacturing capabilities, accelerate new product development, expand market reach, and provide working capital. This financial support will strengthen EKA’s operations, supply chain, and market expansion initiatives.
Mitsui’s perspective
Hiroshi Takeuchi, Deputy General Manager of Mitsui’s Mobility Business Unit 1, stated, “We are thrilled to deepen our partnership with EKA Mobility through the investment of this second tranche. EKA Mobility has demonstrated strong growth and innovation in the EV space, and we are excited to support their continued success. We look forward to utilising Mitsui’s global network to promote exporting EKA’s competitive products to overseas markets. This investment aligns with Mitsui’s strategic focus on sustainable and forward-looking industries, and we are confident that EKA Mobility will play a pivotal role in the future of transportation.”
EKA’s market position and vision
EKA, headquartered in Pune, India, has been developing a range of electric buses in 7m, 9m, and 12m categories, intercity coaches, and electric light commercial vehicles. The company is also approved under the Government of India’s Auto PLI policy. Mitsui’s renewed investment highlights confidence in EKA Mobility’s vision, technology, and market potential.
Dr. Sudhir Mehta, Founder of EKA, expressed gratitude for Mitsui’s continued support: “We are immensely grateful to Mitsui & VDL Groep for their unwavering confidence and sustained investment in EKA Mobility. The continued investment support will enable us to accelerate our growth trajectory, bring innovative EV solutions to market faster, and further our mission to create a sustainable and green transportation ecosystem. We look forward to a long and successful partnership with Mitsui & VDL.”
Growing order book
EKA’s order book has grown significantly, with over 1,000 electric buses and 5,000 electric light commercial vehicles. The acceptance of EKA buses in Delhi and Greater Mumbai indicates a likely surge in electric bus orders in the coming months. EKA is well-positioned to capture and fulfil this demand.
EKA Mobility’s strategic partnership with Mitsui and VDL Groep, along with the recent investment, positions the company for significant growth in the EV sector. With a focus on innovation and market expansion, EKA aims to play a crucial role in advancing sustainable transportation solutions in India and beyond.