India-based electric mobility company Motovolt said it has acquired a stake in eROCKIT, a Germany-based electric two-wheeler original equipment manufacturer (OEM).

Motovolt has primarily focused on providing affordable micro-mobility solutions in India. eROCKIT is an electric two-wheeler that combines the performance of a motorcycle with the ease of use of an e-bike, resulting in a one-of-a-kind riding experience. It is accomplished with Human Hybrid technology.

Motovolt’s initial investment of €1 million (~$1.07 million) in eROCKIT is intended to support the product development and production of eROCKIT’s high-end models at their manufacturing facility located in Berlin, Germany.

Additionally, the company said it aims to invest approximately €10 million (~$10.7 million) in the industrialization of eROCKIT products, which could help Motovolt expand its offerings and enhance the quality of its electric mobility solutions.

This company said that the deal marks the first strategic merger and acquisition deal between an Indian EV startup and a German OEM. It could have significant implications for the electric vehicle industry, it added.

Additionally, the agreement is a step towards promoting Indo-German trade and collaboration in the electric vehicle sector.

The deal would provide Motovolt access to new technologies and resources by investing in a German electric vehicle manufacturer, while eROCKIT can benefit from Motovolt’s expertise in the Indian market.

Further, the deal would also allow Motovolt to leverage the German company’s technology to improve the entire range of Motovolt products, the company said.

Motovolt is an Indian company that was established in Kolkata in 2018, and it specializes in producing multi-utility electric bikes and scooters for mass commuters in the micro-mobility sector.

The company is committed to promoting sustainable mobility and aims to invest approximately €40 million (~$43 million) in the e-mobility business in the coming years.

It is worth noting that the electric vehicle market in India is expanding rapidly, with more than one million electric vehicles of all types sold in the country last year alone.

This trend indicates a growing demand for sustainable transportation options and suggests that there is significant potential for electric mobility companies to succeed in the Indian market.

Electric vehicle industry stakeholders are optimistic about the year ahead and expect higher sales traction in 2023. Read the major developments in the industry of 2022 here.