India’s EV firms raise nearly ₹3,800 crore as investor interest accelerate

India’s automobile sector is attracting fresh capital amid resilient vehicle demand, with companies raising nearly ₹3,800 crore through four major fundraising deals in recent months, according to an Equirus Capital report.

The fundraising activity spans original equipment manufacturers (OEMs), electric vehicle startups and mobility operators, reflecting broad-based investor interest across the automotive value chain as companies invest in manufacturing capacity, fleet expansion and balance-sheet strengthening.

Craftsman Automation led the fundraising activity, raising around ₹2,000 crore through a Qualified Institutional Placement (QIP), with the proceeds earmarked largely for debt reduction and capacity expansion. Ola Electric Mobility mobilised nearly ₹780 crore through a QIP to strengthen its balance sheet, expand manufacturing and support future growth initiatives.

Bengaluru-based EV manufacturer Simple Energy raised around ₹250 crore through a Series B funding round to scale production, while JBM Ecolife Mobility secured approximately ₹750 crore in strategic funding to expand its operational electric bus fleet from around 3,400 buses to nearly 5,000 buses over the next 12 months.

Investment activity extended beyond fundraising. Rane (Madras) entered into an agreement to acquire Hindustan Composites’ friction business for around ₹370 crore, while Sona BLW Precision Forgings approved around ₹63 crore of capital expenditure to diversify into the manufacturing of robotics components, highlighting continued investment across the broader mobility ecosystem.

The report highlighted continued progress in India’s transition to electric mobility. Policy support for the transition has also continued to strengthen. The Delhi Government notified the Delhi Electric Vehicles Policy 2026, which envisages an investment plan of around ₹15,000 crore to accelerate EV adoption through fiscal incentives and phased electrification targets.

According to Equirus, the combination of sustained fundraising, strategic acquisitions, resilient domestic demand and rising EV adoption provides a supportive backdrop for the automobile sector’s medium- to long-term growth, with auto ancillary companies continuing to account for a significant share of overall deal activity.

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