Folks Motor Raises ₹100cr To Boost EV Manufacturing

By Manish Kumar/ Updated On Mon, May 19th, 2025

Indian automotive firm Folks Motor has secured ₹100 crore in the first close of its ₹500 crore electric vehicle (EV)-focused investment fund, aimed at bolstering domestic EV manufacturing and infrastructure.

The fund, dubbed Folks Funds, is structured as an Alternative Investment Fund (AIF) Category II and targets full closure by the end of 2025. It will focus on strengthening India’s EV supply chain, creating jobs, and advancing retrofitment technologies, the firm said.

EV Focused Industrial Park

A major portion of the capital will go toward developing The Blue IP, an xEV-focused industrial and warehousing park in Sonipat, Haryana. The site is intended to support manufacturing and logistics operations within the EV ecosystem.

The fund will prioritise investments in powertrain systems, energy storage, electronic manufacturing services (EMS), and system integration, with a goal of achieving at least 50% domestic value addition, in line with government policies.

Folks Motor is also in discussions with the state governments of Telangana and Karnataka to expand its investment footprint. Both states have rolled out initiatives to support EV adoption and industrial development.

Blooming Indian EV Market

India’s EV market recorded sales exceeding two million units in 2024, a 25.4% year-on-year increase. However, localisation of key components such as motors and controllers remains limited to 30–40%, highlighting a gap in the domestic manufacturing base.

Projections suggest that the sector could generate up to five million direct and 30 million indirect jobs by 2030. Folks Funds aims to contribute to this expansion by backing firms involved in EV components, systems, and retrofitment, it said.

“Our vision with Folks Funds is to redefine India’s position in the global EV supply chain,” said Nikhil Anand Khurana, Managing Director and CEO of Folks Motor. “Through The Blue IP and strategic investments, we aim to create future-ready ecosystems for sustainable manufacturing.”

Folks Motor said the fund would also support retrofitment solutions to extend the life of existing vehicles and reduce operating costs, particularly for commercial fleets.The company currently provides hybrid electric retrofit kits and services under its HyB brand, offering solutions aimed at increasing fuel efficiency and reducing emissions in passenger vehicles.