Folks Motor is positioning itself aggressively to tap the vehicle EV conversion market. In an interview with Akbar Merchant, Nikhil Anand Khurana, MD, Folks Motor, outlines the company’s revenue roadmap, capital expenditure plans while also flagging key policy reforms needed to unlock faster adoption of EV retrofitment in India
Q: What does Folks Motor do, and how large is your footprint in India today?
We are Headquartered in Delhi-NCR and we convert existing petrol and diesel vehicles into hybrid-electric or EV-capable vehicles. Our footprint includes six 3S retail partners, five C&F agents, 25 distributors and an 80–90 service dealer network, covering Delhi-NCR, Mumbai-MMR, Bengaluru, Chennai and Chandigarh in the first phase.
Q: How has Folks Motor’s revenue trajectory evolved over the last year and are you confident of achieving Rs 200 crore?
Based on our current confirmed order book, we remain confident of achieving Rs 200 crore in revenue by FY27. Demand is being driven by a combination of fleet electrification, institutional projects and growing consumer acceptance.
Q: What does the current revenue mix look like, and how do you see it changing over the next two years?
Our revenue is largely driven by technology-led proprietary EV systems and over the next two years, we expect a sharper contribution from financial services and asset-backed infrastructure platforms.
Q: Tell us about Folks Finance and how it contributes to profitability.
Folks Finance is our financial services arm designed to enable priority-sector lending for EVs and retrofitment customers. It also supports EV and retrofit buyers, while corporate lending focuses on project finance and structured credit for EV dealers and component manufacturers.
Our loan book is expected to grow from Rs 4–5 crore as of FY25 to Rs 25–30 crore by FY27, with a long-term target of Rs 250 crore by 2030.
On orders and financing pipeline
Q: What does the order and financing pipeline look like over the next 12–24 months, and how much revenue visibility does it provide?
We are growing our domestic order book with export opportunities in Europe, Middle East & Africa regions with projects such as electric retrofits for buses, PPP tender for retrofit cars & kits with state governments & PSUs in India. We have our current order book of Rs.120-150 crore as of March 2025, with Rs.600 crore for the next five years with a target of Rs.1000 crore by 2030, while our focus being on xEV (electric vehicle) components and retrofitting solutions. We are very confident about our revenue targets and growing 25-30% YoY.
Q: How much capital expenditure is planned, and how much of it is linked to confirmed demand?
We are planning Rs 300 crore of capex over the next three years, largely backed by confirmed orders. This includes a 25 MWh battery energy storage facility, annual capacity of 2 lakh powertrain platforms, expansion of electronic manufacturing services, and system integration capabilities. With improving demand visibility, total investment could scale to Rs 500 crore by 2030, aligned with export opportunities and larger fleet and institutional programs.
On EV retrofit market in India
Q: How large is the EV retrofit market in India and how do you see it evolving?
India’s EV powertrain retrofit market is currently valued at around USD 2.1 billion (Rs 1,800–1,900 crore) and is expected to grow at a mid-teens CAGR of about 13%, reaching close to USD 4 billion by 2026. Growth will be led by two- and three-wheelers, followed by small commercial vehicles and fleet conversions.
Q: What are the advantages of EV conversions versus buying a new EV?
Retrofitment offers a faster and more cost-effective route to electrification with over 40–60% fuel efficiency gains, 30–50% lower running costs among others.
Q: What are the key policy challenges facing the EV retrofit industry?
India’s EV transition needs retrofitment, not just new vehicle sales. The biggest gaps are the absence of a dedicated HSN code, lack of a uniform 5% GST framework and clarity on fitness certificate extensions. Certified retrofitted EVs should qualify for a 10-year RC extension, as they meet modern emission and safety standards.