British International Investment Commits $33.5 Million to India’s EV Sector

New Delhi, Dec 4 (KNN) UK-based development finance institution British International Investment (BII) announced on Tuesday a USD 33.5 million investment in India’s electric vehicle (EV) ecosystem.

The funding will target three companies, aiming to overcome critical barriers to EV adoption, such as manufacturing limitations and affordability challenges.

BII will channel USD 15 million in debt financing to Mumbai-based fleet operator Everest Fleet, USD 15 million in equity funding to EV manufacturer TI Clean Mobility—a subsidiary of Tube Investments of India—and USD 3.5 million to EV component maker Vecmocon.

The investments are part of BII’s broader commitment to green technology and climate-mitigating initiatives in India.

The organisation has so far invested USD 328 million in India’s EV sector and plans to allocate up to USD 1 billion in coming years to accelerate the country’s energy transition.

“Our approach to investing in the EV sector goes beyond manufacturing EVs and components; it also aims to enable people to afford an EV and secure sustainable jobs,” said Abhinav Sinha, managing director and head of technology and telecoms at BII.

The funds are expected to facilitate significant expansion within India’s EV ecosystem. Everest Fleet plans to add 1,300 EVs to its portfolio, creating job opportunities for drivers in cities like Mumbai and Delhi.

Vecmocon, meanwhile, will enhance its production of EV components, crucial for a robust supply chain.

BII’s previous investments in India’s EV sector include funding for Euler Motors, EV financing platform Turno, battery-swapping network Battery Smart, and a USD 250 million passenger EV partnership with Mahindra & Mahindra in 2022.

India’s EV market is poised for exponential growth, with annual sales projected to reach 10 million units by 2030, according to Union Minister Nitin Gadkari. The sector’s market value could hit Rs 20 lakh crore within the same timeframe.

BII’s strategic investments underscore the critical role of international finance in driving India’s decarbonisation journey, ensuring the country meets its ambitious climate goals while fostering economic growth and job creation.

(KNN Bureau)

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