Folks Motor, a prominent player in the xEV (retrofit) industry, a leading Indian automotive company, 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 expectations to reach the full ₹500 crore by the end of 2025. The fund aims to bolster India’s electric vehicle (EV) supply chain and local manufacturing capabilities. Folks funds is India’s first ESG-focused investment fund catering to EV supply chains for its consolidation and to aggregate the demand of EV systems and components.
A significant portion of the fund will be allocated to developing “The Blue IP,” India’s first xEV-focused warehousing and industrial park in Sonipat, Haryana. This initiative is designed to support the EV ecosystem by providing state-of-the-art infrastructure for manufacturing and logistics.
The fund’s strategic investments will focus on key areas such as powertrain systems, energy storage, Electronic Manufacturing Services (EMS), and system integration. The objective is to achieve a minimum of 50% domestic value addition in line with government policies promoting local manufacturing.
Recognising the importance of regional collaboration, Folks Motor is in discussions with state governments in Telangana and Karnataka to expand its investment footprint. These states have been proactive in promoting EV adoption and infrastructure development.
India’s EV market is experiencing rapid growth, with sales surpassing 2 million units in 2024, marking a 25.4% year-over-year increase. However, localisation levels for critical components like motors and controllers remain at 30-40%, indicating a significant opportunity for domestic manufacturing.
The EV sector is also a significant driver of employment, with projections estimating the creation of 5 million direct and 30 million indirect jobs by 2030. Folks Funds aims to contribute to this growth by supporting companies that are integral to the EV supply chain.
“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. Besides this, the fund will also focus on retrofitment technologies, which are critical to extending the lifespan of existing vehicles and reducing operational costs for commercial fleets. This dual approach supports both green mobility and economic efficiency,” said Nikhil Anand Khurana, MD & CEO of Folks Motor.
The fund’s role goes beyond capital infusion; it is a catalyst for job creation, domestic innovation, and strategic consolidation of the EV supply chain. By enabling self-reliant EV manufacturing and supporting allied sectors like retrofitting and CNG, Folks Funds is poised to accelerate India’s transition toward green mobility and position the country as a global hub for sustainable automotive solutions.