In a landmark move set to reshape India’s electric vehicle (EV) landscape, Folks Motor, a prominent name in the xEV (retrofit) segment and a leading Indian automotive player, has announced the launch of Folks Funds, an Alternative Investment Fund (AIF) Category II with an initial corpus of ₹500 crore.
The fund, which has already secured ₹100 crore in its first close, is poised to reach its full target by the end of 2025. Folks Funds is India’s first ESG (Environmental, Social, and Governance)-focused investment initiative dedicated exclusively to strengthening the EV supply chain and scaling local manufacturing.
A significant portion of the capital will go toward the development of The Blue IP, the country’s first xEV-centric warehousing and industrial park in Sonipat, Haryana. The facility will provide state-of-the-art infrastructure for EV manufacturing, system integration, and logistics.
“This fund is a step towards Atmanirbhar Bharat, enabling domestic innovation and job creation while attracting global interest in Indian-made EV components,” said Nikhil Anand Khurana, Managing Director & CEO, Folks Motor. “With the Blue IP and our strategic partnerships, we are not just building infrastructure—we are building future-ready ecosystems for sustainable manufacturing.”
The fund will strategically invest in key verticals including powertrain systems, energy storage solutions, Electronic Manufacturing Services (EMS), and system integration. It also aims to achieve a minimum of 50% domestic value addition, aligning with national policies that promote localisation.
Discussions are underway with the governments of Telangana and Karnataka to expand Folks Motor’s investment footprint, leveraging the progressive EV policies in both states.
India’s EV market crossed a major milestone with over 2 million units sold in 2024—a 25.4% year-on-year growth. However, localisation of critical components such as motors and controllers remains limited at 30-40%, presenting a vast opportunity for domestic innovation and manufacturing.
Folks Funds is also set to play a pivotal role in addressing this gap while contributing to employment generation in the sector. Projections suggest the EV sector could create 5 million direct and 30 million indirect jobs by 2030.
Additionally, the fund will support retrofitment technologies to extend the life of existing vehicles and lower operational costs for commercial fleets—striking a balance between green mobility and economic viability.
Beyond capital infusion, Folks Funds aims to be a catalyst for change—consolidating supply chains, enhancing domestic capabilities, and driving India’s transition to sustainable transportation solutions.
