Mitsui increases its stake in EKA Mobility to boost EV development

By OEM Update Editorial June 21, 2024 11:28 am

EKA Mobility has completed a second tranche of investment from Mitsui & Co., Ltd. The second tranche will help EKA Mobility’s production capabilities, accelerate new product development, broaden its market reach, and provide working capital. 

EKA (Pinnacle Mobility Solutions) announces that Mitsui & Co., Ltd. (“Mitsui”), a global trading and investment company with a long history of contributing to industrial innovation, has completed a second tranche investment as part of the previously disclosed phased investment, demonstrating their continued commitment to the rapidly growing electric vehicle (EV) company. This strategic financial infusion will fund capital expenditures (Capex) and working cash, allowing EKA Mobility to continue expanding and innovating in the EV sector. This tranche also creates an attractive value benchmark for the company, demonstrating EKA’s rapid expansion.

In December 2023, EKA, Mitsui, and VDL Groep formed a long-term collaboration to develop a major global OEM in India with combined investments of USD 100 million  INR 850 crores) in phases, equity, and technical cooperation. This is one of the world’s largest and most significant new transportation collaborations. Mitsui will make large and strategic investments in EKA Mobility, while VDL Groep, a major Dutch technology and manufacturing business, will provide technological support and an ownership partnership. As part of this agreement, VDL Bus & Coach, a subsidiary of VDL Groep and Europe’s leader in electric buses and coaches, will assist EKA Mobility by transferring technology to construct electric buses in India for the Indian market.

Earlier this year, Mitsui made its first investment in EKA, propelling the firm to construct one of the country’s largest R&D centres for electric commercial vehicles, new product development, and export expansion. The second tranche will help EKA Mobility’s production capabilities, accelerate new product development, broaden its market reach, and provide working capital. The investment will help the company’s financial backbone to support day-to-day operations, supply chain optimisation, and market expansion efforts.

“We are thrilled to deepen our partnership with EKA Mobility through the investment of this second tranche,” said Hiroshi Takeuchi — Deputy General Manager of Mobility Business Unit 1 of Mitsui. “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 utilizing 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, headquartered in Pune, India, has been at the forefront of the commercial electric mobility revolution, developing a range of electric buses in 7mtr, 9mtr & 12mtr categories, intercity coaches, and a range of electric light commercial vehicles. EKA is also one of the commercial vehicle manufacturers approved under the Government of India’s Auto PLI policy. Mitsui’s renewed investment underscores its confidence in EKA Mobility’s vision, technology, and market potential.

Dr. Sudhir Mehta, Founder of EKA (Pinnacle Mobility Solutions), expressed his 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.”

The company has expanded its order book to over 1000 electric buses and 5000 electric light commercial vehicles, and due to the widespread popularity of EKA buses in Delhi and Greater Mumbai, it is poised to capitalize on the surge in electric bus orders.