MUMBAI, March 18 -- Global private equity firm KKR plans to invest $310 million in PMI Electro to expand its electric bus platform Allfleet and strengthen the company's manufacturing capabilities, the firms said Wednesday.

The deal marks KKR's first climate transition investment in India and comes from its Global Climate Transition strategy, which has made eight investments globally, including recent ones in Australia.

As part of the investment, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro.

"Transport electrification is a critical pillar of the energy transition, and India-with its scale, urbanization, trends, and decarbonization ambitions-represents one of the most significant opportunities for the...