 "EKA Mobility lands Rs 3,000 cr deal to manufacture 1,500 electric buses")
EKA Mobility, a Pune-based electric vehicle manufacturer which started commercial production just a quarter ago, has said it has an order book of 1,500 electric buses worth about Rs 3,000 crore.
After rolling out 200 electric buses, the startup is projected to manufacture between 300 and 400 buses by the end of this financial year. To meet the growing demand, EKA Mobility (EKA) plans to ramp up annual production to 1,200-1,800 buses in the next financial year.
Sudhir Mehta, founder and chairman, EKA Mobility said, “We are currently producing about 25 buses per month. By next year, we expect to reach between 100 and 150 buses per month. We are setting up three plants, as we anticipate a significant ramp-up in electric vehicle (EV) volumes.”
“Our portfolio includes a full range of city buses, such as 9M, 12M, and 7M models, and we aim to launch our intercity coach early next year,” Mehta added.
The manufacturer is investing around Rs 600 crore in plant capacities and research and development (R&D). A new R&D lab is being established in Chakan, Pune, with focus on developing technologies for its EV portfolio for which the company is investing Rs 450 crore.
Currently, EKA Mobility operates two plants in Pune, one for electric buses and another for electric light commercial vehicles. A third plant is under construction in Pithampur, Madhya Pradesh, which will cater to both electric buses and LCVs for which the company has invested Rs 150 crore.
EKA’s buses are currently operating in Delhi, and the company plans to expand to other cities in the coming months. On the profit front, the company aims to break even in the next financial year.
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In June, the company had secured a funding of Rs 200 crore from Mitsui, a Japanese trading and investment company. This follows an initial investment of Rs 200 crore made by Mitsui in December 2023. Additionally, the company has received Rs 450 crore from the VLD Group, as part of an Rs 850 crore investment deal signed last year.
In international markets, EKA is targeting African and Latin American markets for its electric buses and plans to start exports in the coming year, tapping into the global demand for sustainable transportation solutions.
Overall, the long-term goal is to establish India as a hub for designing and manufacturing world-class electric commercial vehicles, with a focus on exports as well as domestic growth.