Bengaluru EV Maker, River, To Build ₹1000 Cr Facility In South India

Bengaluru-based Electric Vehicle (EV) startup, River Mobility Ltd, plans to invest ₹1,000 crore in a new manufacturing facility spanning between 25 to 50 acres, and is in talks with Andhra Pradesh, Tamil Nadu, Karnataka, and Telangana. They aim to produce 5 lakh vehicles annually.

“We are actively discussing with govts of Telangana, Tamil Nadu, Karnataka and Andhra Pradesh for land where we can construct our own factory. We would need anywhere from 25 to 50 acres for a facility that can churn out half a million units per year,” said Aravind Mani, CEO of River Mobility. 

River Mobility has already invested approximately Rs 250 crore in its R&D facility and leased factory in Bengaluru. 

Now, they plan to invest a whopping Rs 1,000 crore for a larger, owned facility, all thanks to a $68 million (approx. Rs 575 crore) fund they acquired over the last three years from strong investors, including prominent Japanese companies such as Yamaha, Toyota, Mitsui, and Marubeni.

“River is the first investment in India for Maniv Mobility, Trucks VC, Lower Carbon Capital, Toyota Ventures, Al-Futtaim Automotive and Marubeni Ventures,” Mani stated. 

He also announced the opening of the company’s first retail outlet in Hyderabad.

Social Media Reaction:

People online are discussing the most suitable state for building a manufacturing facility.

One user wrote, "Should go to AP. Also you are promoting AP and Telangana so bad these days, I don't think TN and Karnataka have any chance. Especially Karnataka with the latest fiasco. CBN will roll out the red carpet and will make sure they invest in AP."

Another user commented, "TN is the suitable choice considering the EV ecosystem and suppliers. Has attracted half the EV investments in the state and is just not restricted to Chennai alone but cheaper options like Hosur and Thoothukudi have huge companies like Ola, Ather, Vinfast etc."

A third user replied, "Andhra Pradesh is best location- Rayalaseema area (west side of AP) is close to TWO big metropolises- Chennai and Bangalore. AP will give low of production (low land rates, low cost of labor) while also giving it a strategic proximity to two massive markets."