Mitsui increases investment in EKA Mobility to support expansion, innovation in EV sector

Electric commercial vehicle maker EKA Mobility on Thursday said Mitsui Co & Ltd has executed a second tranche investment, as a part of an initially announced phased investment.

This strategic infusion of capital will be directed towards capital expenditures (Capex) and working capital, supporting EKA Mobility's continued expansion and innovation in the EV sector.

"Mitsui Co & Ltd has executed a second tranche investment as a part of the initially announced phased investment, further solidifying their commitment to the company," the company said in a statement without divulging the financial details.

EKA, Mitsui and Dutch technology and manufacturing company VDL Groep in December last year had entered into a strategic long-term partnership, that included joint investments of $100 million (Rs 850 crore) in phases, equity, and technology cooperation to create a leading global OEM (Original Equipment Manufacturer) in India.

Earlier this year, Mitsui invested its maiden tranche in EKA Mobility which propelled the company to establish one of the largest R&D centres in the country for electric commercial vehicles, new product development, and expanding its export footprints.

"This investment aligns with Mitsui's strategic focus on sustainable and forward-looking industries, and we are confident that EKA Mobility will play a key role in the future of transportation. 

We look forward to utilising Mitsui's global network to promote exporting EKA's competitive products to overseas markets," said Hiroshi Takeuchi, Deputy General Manager of Mobility Business Unit 1 at Mitsui.

Under the cooperation, EKA Mobility will receive significant and strategic investments from Mitsui, and technological support and equity partnership from VDL Groep.

"The continued investment support (from VDL Groep) 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," said Sudhir Mehta, Founder of EKA (Pinnacle Mobility Solutions).

The company also said its order book has significantly grown to over 1,000 electric buses and over 5,000 electric light commercial vehicles.