Folks Motor Commits ₹500cr For EVs, Aims Local Manufacturing

Folks Motors Commits ₹500cr EVs, Aims Boosting Local Manufacturing

Hybrid electric retrofit solutions company Folks Motor has announced a Rs 500 crore capital expenditure (CAPEX) investment over the next five years under the Production Linked Incentive (PLI) scheme. This investment is directed towards developing dedicated EV warehousing industrial parks, strengthening India’s EV supply chain, and addressing the critical challenge of achieving 50% domestic value addition in the sector.

A key aspect of this investment strategy includes forming partnerships with four major system manufacturers specializing in powertrain, electronic manufacturing services (EMS), energy storage, and system integration. These collaborations aim to accelerate innovation and enhance the localization of critical EV components, aligning with the Indian government’s vision for self-reliant manufacturing.

Broader Investment Channel

In addition to these efforts, Folks Motor is leveraging a broader investment channel valued between $700–$800 million. As part of this initiative, the company is deploying ₹500 crore for integrated CAPEX through Folks Funds, an AIF Category II fund. This fund will be utilized for the development of a warehousing and industrial park, further consolidating the supply chain. Discussions regarding these developments are already underway with state governments, including the Government of Uttar Pradesh.

The investment strategy also includes a $100 million ESG bond, with ₹500 crore allocated for capex scaling. The remaining portion of this amount will be utilized for working capital, covering expenses related to opex, logistics, and industrial infrastructure to ensure efficient fund utilization within the loan book. Furthermore, Folks Finance will expand its loan book to ₹250 crore to support working capital and opex requirements across the value chain.

“At Folks Motor, we recognise the urgent need to build a robust and integrated EV ecosystem in India. This investment is a testament to our commitment to strengthening domestic manufacturing, creating jobs, and driving technological advancements in the sector. By forging partnerships across key verticals, we are not only solving the 50% domestic value addition challenge but also laying the groundwork for India’s leadership in the global EV supply chain,” said Nikhil Anand Khurana, Founder & CEO, Folks Motor.

Folks Motor offers hybrid electric retrofit solutions for cars, focusing on increasing fuel mileage and reducing running costs. Their services include HyB Cars (certified pre-owned cars with hybrid retrofitting), HyB Kits (hybrid electric retrofit kits for specific car models), and HyB Care (green car care services like washing, charging, and paint protection). They aim to provide eco-friendly solutions with benefits like improved fuel efficiency, reduced emissions, and a unique gearless electric driving mode.