Folks Motors, a leading innovator in the xEV industry, has unveiled an ambitious investment plan of ₹500 crore over the next five years under the Production Linked Incentive (PLI) scheme. The initiative aims to bolster India’s EV ecosystem by developing dedicated EV warehousing industrial parks, localizing critical components, and enhancing supply chain efficiencies.
A key pillar of this investment strategy is the formation of strategic partnerships with four major system manufacturers, specializing in powertrain, electronic manufacturing services (EMS), energy storage, and system integration. These collaborations are designed to drive innovation and accelerate the localization of EV components, aligning with the Indian government’s push for 50% domestic value addition in the sector.
Beyond the PLI-led investment, Folks Motors is leveraging a broader capital pool of $700–$800 million, with ₹500 crore channeled through Folks Funds, an AIF Category II fund. This capital will be utilized for the development of an integrated warehousing and industrial park, further solidifying India’s EV supply chain. Talks are already underway with state governments, including the Government of Uttar Pradesh, to facilitate this expansion.
In addition, the company has announced a $100 million ESG bond, with ₹500 crore allocated for CAPEX scaling. A portion of this funding will also be utilized for working capital, logistics, and industrial infrastructure to optimize fund deployment. Furthermore, Folks Finance will expand its loan book to ₹250 crore, supporting working capital and operational expenses (OPEX) across the EV value chain.
Nikhil Anand Khurana, Founder & CEO of Folks Motors, emphasized the significance of this investment in shaping India’s EV future. “At Folks Motors, we recognize the urgent need to build a robust and integrated EV ecosystem in India. This investment reaffirms our commitment to domestic manufacturing, job creation, and technological advancements. By forging partnerships across key verticals, we are not only addressing the 50% domestic value addition challenge but also laying the foundation for India’s leadership in the global EV supply chain,” he stated.
With this investment, Folks Motors aims to accelerate India’s transition to sustainable mobility, strengthen local manufacturing, and cement its position as a leading Original Equipment Manufacturer (OEM) in the EV market. The company remains committed to innovation, sustainability, and industrial growth, driving the nation closer to becoming a global EV powerhouse.
