NEW DELHI: Folks Motor, a leading player in the xEV (retrofit) industry and a prominent name in the Indian automotive sector, has launched “Folks Funds,” an Alternative Investment Fund (AIF) Category II, with an initial corpus of ₹500 crore. The brand has already secured ₹100 crore in its first close, with the full amount expected by the end of 2025.
The fund aims to strengthen India’s electric vehicle (EV) supply chain and enhance local manufacturing capabilities. It is India’s first ESG-focused investment fund designed to consolidate the EV supply chain and aggregate demand for EV systems and components.
Driving Localisation and Innovation
A major portion of the fund will be invested in developing “The Blue IP”, India’s first xEV-focused industrial park in Sonipat, Haryana. This state-of-the-art facility will support EV ecosystem advancements through cutting-edge manufacturing and logistics infrastructure.
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The fund’s strategic focus will include investments in powertrain systems, energy storage, Electronic Manufacturing Services (EMS), and system integration, aiming for at least 50% domestic value addition in line with government policies promoting local manufacturing.
Folks Motor is also in talks with the governments of Telangana and Karnataka to extend its investment reach. These states have been proactive in promoting EV adoption and building supportive infrastructure.
Bolstering Employment and EV Supply Chain
India’s EV market saw remarkable growth in 2024, with over 2 million units sold—a 25.4% increase from the previous year. Despite this progress, localisation levels for critical components such as motors and controllers are still between 30-40%, indicating a substantial opportunity for domestic manufacturing.
The EV sector’s employment potential is also significant, with projections estimating 5 million direct and 30 million indirect jobs by 2030. Folks Funds aims to support this growth by fostering companies that are pivotal to the EV supply chain.
A Vision for a Self-Reliant EV Future
Nikhil Anand Khurana, MD & CEO of Folks Motor, expressed the company’s vision:
“Our vision with Folks Funds is to redefine India’s position in the global EV supply chain. With The Blue IP and our strategic partnerships, we are not just building infrastructure—we are building future-ready ecosystems for sustainable manufacturing. This fund is a step towards Atmanirbhar Bharat, enabling domestic innovation and job creation while attracting global interest in Indian-made EV components.”
Khurana also highlighted the focus on retrofitment technologies, which are crucial for prolonging vehicle lifespans and lowering operational costs for commercial fleets. This approach supports both green mobility and economic efficiency.
Catalyst for Green Mobility
Beyond mere capital infusion, Folks Funds aims to be a catalyst for job creation, domestic innovation, and strategic consolidation of the EV supply chain. By promoting self-reliant EV manufacturing and supporting allied sectors like retrofitting and CNG, Folks Funds is positioned to advance India’s transition towards green mobility and establish the country as a global hub for sustainable automotive solutions.
