Tuesday, July 16, 2024

River Mobility Plans Major Investment in Indian EV Manufacturing Expansion


River Mobility Announces Major Investment in New EV Manufacturing Facility

In a significant boost to India’s burgeoning electric vehicle (EV) sector, Bengaluru-based startup River Mobility Pvt Ltd has unveiled plans for a substantial investment in the establishment of a state-of-the-art manufacturing facility. The company has outlined an ambitious strategy to invest approximately Rs 1,000 crore to develop a facility capable of producing 5 lakh vehicles each year, signaling a major leap in its manufacturing capabilities and commitment to the EV market.

Strategic Location Hunt Across Four States

The search for the perfect location for this mega-facility is currently underway, with River Mobility engaging in active discussions with the governments of Telangana, Tamil Nadu, Karnataka, and Andhra Pradesh. The company is scouting for a land parcel ranging between 25 to 50 acres that could support the scale of production they envision – a factory with the capacity to churn out half a million units annually.

“We are actively discussing with the govts of Telangana, Tamil Nadu, Karnataka, and Andhra Pradesh for land where we can construct our own factory,” shared Aravind Mani, CEO of River Mobility. The drive to select a location is fueled by the ambition to significantly scale up production capabilities beyond the current capacity of their Bengaluru operation.

Current Operations and Future Investments

As of now, River Mobility has made significant inroads in the EV segment with its Bengaluru facilities, where it has already committed approximately Rs 250 crore towards a leased R&D and production facility. This existing setup boasts the capability to produce 1 lakh units per year, laying the groundwork for the anticipated expansion.

The proposed Rs 1,000 crore investment will not only set the stage for a vastly larger owned manufacturing base but also marks a transformative phase in the startup’s growth trajectory. It is a significant uptick from the company’s current manufacturing capabilities and showcases the determination to establish a stronger foothold in the EV market.

Backing of Global Giants

Beaconing confidence in River Mobility’s vision and strategy are some of the world’s leading corporations and investment firms. Over the last three years, the startup has managed to secure approximately $68 million (around Rs 575 crore) from influential investors, including giants from Japan such as Yamaha, Toyota, Mitsui, and Marubeni.

Highlighting the significant international interest in River’s growth story, Mani said, “River is the first investment in India for Maniv Mobility, Trucks VC, Lower Carbon Capital, Toyota Ventures, Al-Futtaim Automotive, and Marubeni Ventures.” This global backing not only fortifies the startup’s financial position but also enriches it with a wealth of expertise and industry insight.

Towards a Greener Future

In a significant step towards increasing its consumer touchpoints and brand visibility, River Mobility has also announced the opening of its first retail outlet in Hyderabad. This move not only signifies the company’s growth ambitions but also marks the beginning of its journey to establish a direct connection with consumers.

With a major investment plan and the support of global giants, River Mobility is poised to make significant contributions to India’s EV ecosystem. Its focus on innovation, backed by a strong commitment to sustainable mobility, sets a promising course for the future of transportation in the country. The anticipated expansion and the opening of the new manufacturing facility are keenly awaited milestones that will further accelerate India’s journey towards an electrified automotive future.

Alex Sterling
Alex Sterlinghttps://www.businessorbital.com/
Alex Sterling is a seasoned journalist with over a decade of experience covering the dynamic world of business and finance. With a keen eye for detail and a passion for uncovering the stories behind the headlines, Alex has become a respected voice in the industry. Before joining our business blog, Alex reported for major financial news outlets, where they developed a reputation for insightful analysis and compelling storytelling. Alex's work is driven by a commitment to provide readers with the information they need to make informed decisions. Whether it's breaking down complex economic trends or highlighting emerging business opportunities, Alex's writing is accessible, informative, and always engaging.

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