British International Investment Plans $300M Boost for India’s EV Ecosystem Over Next 3 Years

British International Investment (BII), the UK’s development finance institution, is planning to invest another $300 million in India’s electric vehicle (EV) sector over the next three years. Abhinav Sinha, the company’s Managing Director and Head of Technology & Telecoms, shared this in a recent interview.

Current Investments and Future Plans

BII has already invested around $300 million in the Indian EV market. They have supported Mahindra Group’s EV division and startups like Euler Motors, Turno, and Battery Smart. BII sees more opportunities in EV manufacturing, components, and financing in India.

India’s Evolving EV Market

Sinha noted that India’s auto market is well-developed, but EV penetration is currently at about 6%, lagging behind other countries. However, he believes this can quickly double and more. “China is the leader now, but India can significantly advance from where it is today,” Sinha said, expressing confidence in India’s potential.

Government Support and Future Growth

By 2030, Sinha expects a significant increase in EV use in public transportation in India, along with growing adoption of passenger electric cars. He believes India might even surpass Europe and the US in EV penetration, driven by government support and the economic benefits of EVs.

Details of BII’s Investments

BII has invested $300 million in India’s EV sector so far. Their major investment of about $250 million was in Mahindra’s EV platform. They have also invested in startups like Euler Motors, Turno, and Battery Smart, which are involved in various aspects of the EV market.

Continued Investment Strategy

Looking ahead, Sinha said BII plans to continue investing at a similar pace. Their strategy includes focusing on early-stage investments, typically ranging from $5 million to $10 million. As these companies grow, BII plans to provide additional funding.

Focus on Climate and EVs

For BII, climate initiatives are a top priority, with EVs being the largest investment area. Sinha mentioned that BII will keep investing in manufacturing, components, and financing within the EV sector, aiming to support the entire value chain.