Folks Motors, a leading innovator in the xEV industry, has announced an ambitious INR 500 crore capital expenditure (CAPEX) investment over the next five years under the Production Linked Incentive (PLI) scheme. This investment is directed towards developing dedicated EV warehousing industrial parks, strengthening India’s EV supply chain, and addressing the critical challenge of achieving 50% domestic value addition in the sector.
A key aspect of this investment strategy includes forming strategic partnerships with four major system manufacturers specializing in powertrain, electronic manufacturing services (EMS), energy storage, and system integration. These collaborations aim to accelerate innovation and enhance the localization of critical EV components, aligning with the Indian government’s vision for self-reliant manufacturing.
In addition to these efforts, Folks Motors is leveraging a broader investment channel valued between $700–$800 million. As part of this initiative, the company is deploying ₹500 crore for integrated CAPEX through Folks Funds, an AIF Category II fund. This fund will be utilized for the development of a warehousing and industrial park, further consolidating the supply chain. Discussions regarding these developments are already underway with state governments, including the Government of Uttar Pradesh.
The investment strategy also includes a $100 million ESG bond, with ₹500 crore allocated for capex scaling. The remaining portion of this amount will be utilized for working capital, covering expenses related to opex, logistics, and industrial infrastructure to ensure efficient fund utilization within the loan book. Furthermore, Folks Finance will expand its loan book to ₹250 crore to support working capital and opex requirements across the value chain.
“At Folks Motors, we recognise the urgent need to build a robust and integrated EV ecosystem in India. This investment is a testament to our commitment to strengthening domestic manufacturing, creating jobs, and driving technological advancements in the sector. By forging partnerships across key verticals, we are not only solving the 50% domestic value addition challenge but also laying the groundwork for India’s leadership in the global EV supply chain,” said Nikhil Anand Khurana, Founder & CEO, Folks Motors.
Folks Motors remains steadfast in its mission to redefine the xEV landscape by focusing on innovation, sustainability, and strategic industrial growth. With this investment, the company aims to support India’s transition towards cleaner mobility and bolster its position as a leading OEM in the EV market.
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