Thailand-based Assara Electric Company Ltd. has entered into a strategic partnership with Kolkata-based Mercstone International Pvt. Ltd. (Mercstone EV) to establish an electric vehicle manufacturing facility in Sankrail, Howrah district, West Bengal.
The collaboration involves a phased investment of ₹250 crore, aimed at strengthening India’s electric mobility ecosystem through local manufacturing, advanced technology transfer, and affordable electric vehicles.
The project is expected to create new employment opportunities while supporting the state’s ambition to become a hub for EV production.
₹250 Crore Investment Planned
Under the agreement, the joint venture will see a total phased investment of ₹250 crore.
As part of the first phase, Assara Electric will bring in 250 million Thai Baht (approximately ₹71.3 crore) as foreign direct investment (FDI) to support the establishment of the manufacturing plant.
The facility will be located in Sankrail, an industrial area in Howrah district, strategically positioned to serve eastern India’s growing EV market.
Technology from Thailand, Manufacturing in India
The partnership combines Thai engineering expertise with Indian manufacturing capabilities.
Assara Electric will provide:
- Advanced EV technology
- Technical know-how
- Waterproof electric motor technology
- Thermal management systems
- Supply of critical raw materials
Meanwhile, Mercstone International will be responsible for:
- Setting up the manufacturing plant
- Developing assembly lines
- Hiring and training the local workforce
- Sales and nationwide distribution
- After-sales service and customer support across India
This division of responsibilities aims to accelerate production while ensuring localized manufacturing and support.
Affordable Electric Scooters Planned
The companies plan to launch budget-friendly electric scooters priced between ₹50,000 and ₹60,000.
The scooters are expected to target:
- First-time EV buyers
- Daily commuters
- Students
- Gig economy workers, including food delivery and logistics personnel
To improve affordability, the companies also plan to offer zero down payment financing options, making electric mobility more accessible to a wider range of consumers.
Expansion Beyond Two-Wheelers
While the initial focus is on electric scooters, the partnership has outlined broader ambitions.
Following a market assessment over the next six months, the companies will evaluate expansion into:
- Electric passenger vehicles
- Electric buses
- Other commercial electric mobility solutions
The phased approach will allow the partners to gauge customer demand before entering additional EV segments.
Boost for West Bengal’s EV Ecosystem
The new manufacturing unit is expected to strengthen West Bengal’s industrial base by attracting foreign investment and encouraging technology transfer in the fast-growing electric mobility sector.
With India’s EV market expanding rapidly due to supportive government policies and rising consumer demand, local manufacturing facilities are becoming increasingly important for reducing costs, improving supply chains, and increasing domestic production capacity.
Why It Matters
The partnership between Mercstone EV and Assara Electric marks another significant foreign investment in India’s electric vehicle industry.
By combining international technology with local manufacturing, the venture aims to deliver affordable electric scooters while laying the groundwork for future expansion into larger EV segments. If successful, the project could contribute to job creation, strengthen West Bengal’s position in EV manufacturing, and support India’s transition toward cleaner and more sustainable transportation.
