As part of its expansion strategy, EKA Mobility is constructing a third plant in Pithampur, Madhya Pradesh, which will produce both electric buses and electric small commercial vehicles (e-SCVs). Sudhir Mehta, the chairman of EKA, stated that this new facility will increase the company’s annual production capacity from the current 4,800 units to 17,500 units by the end of next year.
EKA Mobility, headquartered in Pune, is a leading manufacturer specialising in electric buses and electric small commercial vehicles (e-SCVs). The company has recently received a substantial capital infusion, securing the final tranche totaling INR 1,000 crore from prominent international investors—Japan’s Mitsui & Co. and the Netherlands’ VDL Groep. This significant investment marks a pivotal moment for EKA Mobility, enabling it to accelerate its expansion plans and scale up its operations considerably.
With the fresh capital, EKA Mobility is setting ambitious goals to more than triple its annual production capacity for electric buses and e-SCVs. The company is responding to the escalating demand for electric buses, which is being driven by various state transport undertakings across India under multiple government initiatives aimed at promoting sustainable and eco-friendly transportation solutions.
As a strategic move to meet this growing demand, EKA Mobility is constructing a third manufacturing facility in Pithampur, located in the state of Madhya Pradesh. This new plant will be dedicated to producing both electric buses and electric small commercial vehicles. The addition of the Pithampur facility is projected to boost the company’s total annual production capacity dramatically—from the current 4,800 units to an impressive 17,500 units by the end of next year. Sudhir Mehta, the chairman of EKA Mobility, expressed confidence in this expansion plan, highlighting it as a significant step towards meeting the increasing market demands.
Sudhir Mehta also emphasised the vast opportunities present in India’s electric bus market. He noted that the recent approval of the Payment Security Mechanism (PSM) by the Union Cabinet would serve as a catalyst for the industry’s growth. In September, the Union Cabinet approved the PM-eBus Sewa-Payment Security Mechanism (PSM) scheme, which is a landmark initiative aimed at transforming public transportation in the country.
The PSM scheme comes with a substantial financial outlay of INR 3,435.33 crore. It is designed to support the procurement and operation of over 38,000 electric buses over a five-year period, spanning from the fiscal year 2024-25 to 2028-29. This initiative is expected to provide a significant boost to the adoption of electric buses, ensuring financial viability and mitigating risks for manufacturers and operators by guaranteeing timely payments and financial security.
The government’s commitment through the PSM scheme reflects a broader strategy to promote electric mobility, reduce carbon emissions, and enhance the efficiency of public transportation networks across India. It aims to encourage the transition to cleaner energy sources, thereby contributing to environmental sustainability and improving air quality in urban centres.
EKA Mobility’s expansion aligns seamlessly with these government objectives. By scaling up production, the company is positioning itself to be a key player in meeting the national demand for electric buses and e-SCVs. The collaboration with international investors like Mitsui and VDL Groep not only brings in capital but also introduces global expertise and technologies, further strengthening EKA’s capabilities.
In addition to increasing production capacity, EKA Mobility may also focus on innovation and technological advancements in electric vehicle manufacturing. This could involve enhancing battery technologies, improving vehicle efficiency, and developing advanced features that cater to the specific needs of the Indian market.
The establishment of the new facility in Pithampur is also likely to have a positive impact on the local economy. It is expected to create numerous job opportunities, stimulate ancillary industries, and contribute to the economic development of the region.
