BII commits $33.5m to India’s EV sector

illustration of electric white sport sedan recharching at station with reflection on white background

British International Investment (BII), the UK’s development finance institution and impact investor, has announced $33.5 million in new commitments to support India’s electric vehicle (EV) sector. The investment will address challenges in EV adoption and support key players in manufacturing, fleet expansion, and component development to promote India’s energy transition and decarbonisation goals.

The funding includes $15 million in debt financing for Everest Fleet, $15 million in equity investment in TI Clean Mobility, and $3.5 million in equity for Vecmocon. These investments target critical areas of the EV ecosystem, including fleet expansion, EV production, and advanced component development, to drive industry growth.

Everest Fleet, a fleet management company with over 18,500 cars, will use the funds to expand its EV portfolio by adding 1,300 EVs to its existing fleet of 2,100. This expansion is expected to generate employment opportunities for drivers in six major cities: Mumbai, Bengaluru, Delhi, Hyderabad, Kolkata, and Chennai. TI Clean Mobility, focusing on EV manufacturing for three-wheelers, trucks, and tractors, will leverage BII’s investment to scale its production of low-carbon vehicles and create inclusive jobs. The co-investment is part of the South Asia Growth Fund III managed by GEF Capital Partners. Vecmocon, a Delhi-based company specialising in EV components such as battery management systems and motor controllers, will enhance its research and development capabilities and expand into the commercial EV market with BII’s support.

India has set an ambitious goal to achieve 30% EV penetration by 2030 under the EV30@30 initiative. However, challenges such as high upfront costs, inadequate charging infrastructure, and limited financing options have constrained EV adoption, with EVs currently accounting for only 6.4% of total vehicle sales.

Sally Taylor, Director Development, Climate, Science and Tech at the British High Commission, highlighted the collaboration between the UK and India and said, “India’s ambitious drive towards sustainable mobility is an inspiring testament to its commitment to a greener future. British International Investment’s support for progressive and innovative companies in India’s Zero Emission Vehicles sector reflects the deep partnership between our nations to address shared global challenges like climate change. Together, UK and India are building pathways to cleaner air, a thriving future mobility ecosystem, and a more sustainable tomorrow.”

Abhinav Sinha, Managing Director and Head of Technology & Telecoms at BII said, “EVs remain a nascent sector in India. This is where BII, as the UK’s DFI, can support pioneering companies to contribute to India’s energy transition and decarbonisation journey. 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.”

BII’s commitment aligns with its broader strategy to invest $1 billion in climate-mitigating projects and green technologies in India. Recent investments include funding for LoadShare to expand electric two-wheeler logistics, Euler Motors for commercial EV manufacturing, and ChargeZone to establish over 10,000 charging stations by 2027. In 2022, BII partnered with Mahindra & Mahindra, committing up to $250 million for a passenger EV venture. These initiatives reinforce BII’s dedication to advancing clean mobility, fostering innovation, and supporting India’s net-zero carbon goals by 2070.

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