EKA Mobility, Mitsui, VDL Groep to invest $100 million to create global OEM from India
Indian commercial vehicle manufacturer EKA Mobility has entered into a strategic partnership with Japan-based Mitsui & Co and Netherlands-based VDL Groep. Under this association, the trio will make an investment of close to $100 million dollars (around ₹850 crore) in a phased manner, with a significant portion coming from Mitsui & Co.
Indian commercial vehicle manufacturer EKA Mobility has entered into a strategic partnership with Japan-based Mitsui & Co and Netherlands-based VDL Groep. Under this association, the trio will make an investment of close to $100 million (around ₹850 crore) in a phased manner, with a significant portion coming from Mitsui & Co. This strategic investment will enable the trio to position themselves as a global original equipment manufacturers (OEMs) in the region.
Other than investments, the trio will be exploring equity & technology cooperation. The cooperation will help position India as the global manufacturing and sourcing hub for electric vehicles (EVs).
This partnership the company believes is one of the largest and most significant partnerships in the new mobility segment in India as it brings together the strengths and expertise of three automotive conglomerates in Asia and Europe. The deal will accelerate the development and adoption of innovative electric mobility solutions globally.
Under this partnership, Mitsui & Co will make significant financial investments in EKA Mobility. Thus, enabling the company to scale up its manufacturing operations and expand its product portfolio. Mitsui will also support EKA for exports to select emerging markets as well as establishment of systems & processes.
Further, as part of the partnership, VDL Bus & Coach, a subsidiary of VDL Groep and Europe’s frontrunner in electric buses & coaches will transfer technology to EKA Mobility to produce electric buses in India for the Indian market.
Sudhir Mehta, Founder & Chairman of EKA Mobility said, "This partnership with Mitsui and VDL Groep represents a significant step toward making India a global hub for electric vehicle manufacturing."
"Through the cooperation of EKA, VDL, and Mitsui, we aim to contribute to "Make in India" by leveraging EKA's excellent engineering and local network, and VDL's cutting-edge technological capabilities,” said Nobuyoshi Umezawa, GM of the Mobility Business Division in Mitsui & Co. India. “Furthermore, we would like to utilize Mitsui's global network to promote exporting EKA's competitive products to overseas markets and contribute to creating eco-friendly societies.”
Rolf-Jan Zweep, CEO VDL Bus & Coach said, "Although the basis of our high-quality development and manufacturing competences lie in north-western Europe, we see many opportunities in India, which is obviously a promising growth market. With this cooperation, we foresee especially many synergy benefits in the areas of procurement and development".
EKA Mobility is a commercial vehicle manufacturer whereas EKA is a company that offers end-to-end design, manufacturing & technology of new energy vehicles from scratch in India. It has also grown its order book, with more than 500 electric buses and over 5,000 electric light commercial vehicle orders in the pipeline. All these vehicles will be completely designed & manufactured in facilities in Madhya Pradesh and Maharashtra.
First Published: Dec 27, 2023 10:57 AM IST
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