British International Investment (BII), the UK’s development finance institution and impact investor, today announced new commitments of USD 33.5 million to India’s electric vehicle (EV) sector. The investments underline BII’s dedication to supporting the industry ecosystem and accelerating the energy transition.
The commitments include USD 15 million in debt financing to Everest Fleet, USD 15 million in equity investment in TI Clean Mobility and USD 3.5m in equity commitment to Vecmocon. They span various areas of the industry value chain to address the multifaceted challenges of EV adoption in India.
Everest Fleet will use BII’s funding to expand its electric vehicle portfolio by adding up to 1,300 new EVs to the existing fleet of 2,100 EVs. This initiative will also generate employment opportunities for drivers in six major cities: Mumbai, Bengaluru, Delhi, Hyderabad, Kolkata, and Chennai.
TI Clean Mobility is dedicated to creating India’s most comprehensive EV platform. It focuses on designing and manufacturing EVs, including three-wheelers, trucks, small commercial vehicles, and tractors. BII’s co-investment through GEF’s South Asia Growth Fund III will be used for capital requirements to scale its manufacturing of low-carbon vehicles and to create inclusive jobs at scale.
To scale the manufacturing of better, safer, and smarter EVs, Vecmocon designs critical components such as battery management system, motor controllers, vehicle intelligence modules, chargers etc. It also provides data-driven insights to EV ecosystem players including financiers and customers to make EVs more accessible. The Delhi-based company has enabled over 60,000 cars on Indian roads. With funding from BII, EIF and Blume Ventures, it will enhance its R&D capabilities and expand into the commercial EV market.
India urgently needs more electric vehicles to combat severe air pollution and achieve net-zero carbon emissions by 2070. The Indian government has set an ambitious target of 30 per cent EV penetration by 2030 under the EV30@30 initiative. Currently, EVs account for approximately 6.4 per cent of total vehicle sales in India.
However, the adoption of EVs in India faces several challenges, including high upfront costs, limited charging infrastructure, and a lack of affordable vehicle financing options.
Sally Taylor, Director Development, Climate, Science and Tech, British High Commission, 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 -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.”
In the past 12 months, BII has provided new financing to LoadShare, one of India’s largest last-mile logistics provider to expand its electric two-wheeler offering.
It has also invested in Euler Motors, a commercial EV manufacturer; Turno, an EV distribution and financing platform for small businesses and individuals; and Battery Smart, a battery-swapping network for commercial electric two- and three-wheelers. BII is also supporting ChargeZone to build a network of over 10,000 charging stations by 2027.
In 2022, BII committed up to USD 250 million to a new passenger electric vehicle venture in partnership with Mahindra & Mahindra.
BII’s EV strategy is part of its broader commitment to invest up to USD 1 billion in climate-mitigating initiatives and innovation in green technologies in India.
