Eka Mobility’s Electric Bus Production Gets $57 Million Boost from NIIF’s India-Japan Fund

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The India-Japan Fund, managed by NIIF, has invested $57 million in EKA Mobility to expand electric bus manufacturing capacity in India. This strategic funding supports India's green mobility goals while strengthening India-Japan economic ties and boosting EKA’s production scale to meet increasing demand.

The National Investment and Infrastructure Fund (NIIF), through its India-Japan Fund (IJF), has made a strategic investment of $57 million (approximately Rs 500 crore) in EKA Mobility, a key player in India’s electric vehicle (EV) sector. This investment marks a significant milestone in boosting India's EV manufacturing capabilities and further strengthening the India-Japan economic collaboration.

Key Highlights:

The $57 million capital infusion will primarily fund the expansion of manufacturing capacity for electric buses, with EKA Mobility set to commission its third manufacturing plant in Pithampur, Madhya Pradesh, by the first quarter of the upcoming fiscal year.

With this funding, EKA aims to increase its annual electric bus production capacity from the current 2,500 units to between 6,000 and 8,000 units, facilitating rapid scale-up to meet growing demand.

EKA Mobility has successfully delivered 500 electric buses so far and holds confirmed orders for over 3,300 buses across various state government, municipal, and commercial fleet contracts.

The India-Japan Fund’s investment aligns with its strategic focus on climate-related sectors, especially renewable energy and e-mobility, supporting India’s transition to cleaner transport solutions.

Existing investors in EKA include international players such as VDL Groep (Netherlands) and Mitsui & Co Ltd (Japan), underscoring the global confidence in the company’s growth trajectory.

EKA Mobility benefits from government incentives like the Production-Linked Incentive (PLI) scheme for electric vehicles, which further accelerates its innovation and production capacity ramp-up.

The India-Japan Fund, with a corpus of around $600 million, is a bilateral fund anchored by the Government of India and Japan Bank for International Cooperation (JBIC), aiming to boost sustainable investments in India.

Krishna Kumar, Partner at India-Japan Fund, emphasized that the investment reflects the fund’s commitment to environmental sustainability and strengthening India-Japan partnerships in emerging sectors.

With expanding capacity and strong order pipelines, EKA Mobility is poised to play a pivotal role in India’s electric public transportation landscape, reducing carbon emissions and advancing green mobility goals.

This collaboration highlights the growing synergy between Indian and Japanese stakeholders in accelerating the clean energy and electric mobility transition.

Sources: Economic Times, NIIF official website, Motoring Trends, EV Reporter

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