Folks Motor, a prominent player in the xEV (retrofit) industry, has revealed a significant capital expenditure of ₹500 crore over the next five years. The company aims to develop India’s first xEV warehousing and industrial park, named ‘The Blue IP,’ to strengthen the nation’s electric vehicle supply chain and enhance local manufacturing capabilities.
This investment will also involve the deployment of an additional ₹500 crore through Folks Funds, specifically directed towards the development of ‘The Blue IP’ and the expansion of the supply chain. Furthermore, Folks Motor has structured a $100 million (approximately ₹830 crore based on current exchange rates, though the article mentions scaling up to ₹250 crore within its loan book) ESG bond to support working capital and operational expenses across the EV value chain.
By 2030, Folks Motor projects domestic revenue of ₹200 crore and export revenue of ₹300 crore. The xEV sector has experienced a 25% year-on-year growth in EV systems and components, fueling Folks Motor’s commitment to the rapidly expanding Indian EV market. The company, which has already expanded its operations into the Middle East and Africa, has further plans to enter markets in Europe, Latin America, and Southeast Asia to capitalize on emerging EV opportunities.
A crucial component of this investment strategy includes establishing strategic alliances with four major system manufacturers specializing in powertrain, electronic manufacturing services (EMS), energy storage, and system integration. These collaborations are intended to achieve a 50% domestic value addition and promote self-reliant EV manufacturing within India. Industry data indicates that retrofitting diesel buses with electric powertrains can extend their operational life by 8–10 years and reduce operational costs by up to 32%. This sector also presents substantial opportunities for job creation.
Nikhil Anand Khurana, Managing Director & CEO of Folks Motor, stated, “Folks Motor recognizes the pressing need to establish a strong and integrated EV ecosystem in India. With ‘The Blue IP,’ the first warehousing and industrial park in India focused on xEVs, we are taking a significant step towards strengthening domestic manufacturing. Our target of ₹600 crore in order book by 2030 reflects our dedication to positioning India as a key player in the global EV supply chain. Our expansion strategy aims to make sustainable mobility more accessible without incurring the financial and environmental burdens of discarding existing vehicles.”
Folks Motor is actively collaborating with the Automotive Research Association of India (ARAI). ARAI plays a vital role in establishing standards, conducting testing, and certifying EV components and retrofitted vehicles. ARAI’s ongoing initiatives, such as the development of advanced battery testing protocols and the formulation of EV homologation standards, are crucial for ensuring safety and performance within India’s growing EV sector. Folks Motor’s alignment with ARAI’s research-driven approach is expected to further strengthen its product quality.
The company is also working to align its efforts with government initiatives like the PM E-DRIVE Scheme, which aims to accelerate the adoption of electric vehicles through innovative retrofitting solutions.
Folks Motor aims to build upon its success in the xEV segment, which includes fleet vehicles, public transport, and commercial vehicles, by offering advanced technology and cost-effective solutions. The company’s strategic investment and expansion plans signal its commitment to supporting India’s transition towards cleaner mobility and establishing itself as a leading OEM in the global EV market.
