British International Investment (BII), the UK’s development finance institution and impact investor, has announced new commitments totaling $33.5 million to India’s growing electric vehicle (EV) sector. This significant investment highlights BII’s ongoing dedication to fostering the country’s energy transition and supporting the development of a sustainable EV ecosystem.

The commitments include a $15 million debt financing package for Everest Fleet, $15 million in equity investment for TI Clean Mobility, and a $3.5 million equity commitment to Vecmocon. These investments span various aspects of the EV value chain, addressing key challenges related to EV adoption in India.

Everest Fleet, one of India’s leading fleet management companies, operates a fleet of over 18,500 cars. With BII’s funding, Everest plans to expand its electric vehicle portfolio by adding up to 1,300 new EVs to its existing fleet of 2,100. This initiative will also generate significant employment opportunities for drivers across six major Indian cities—Mumbai, Bengaluru, Delhi, Hyderabad, Kolkata, and Chennai—further supporting India’s transition to cleaner mobility.

TI Clean Mobility is working to build India’s most comprehensive EV platform, designing and manufacturing a range of electric vehicles, including three-wheelers, trucks, small commercial vehicles, and even tractors. The $15 million equity investment, made through BII’s co-investment with the GEF South Asia Growth Fund III, will help TI Clean Mobility scale its low-carbon vehicle manufacturing and generate inclusive employment opportunities as the company expands its operations.

Vecmocon, a Delhi-based company specializing in the design of critical EV components such as battery management systems, motor controllers, and chargers, will use BII’s funding to enhance its research and development (R&D) capabilities. The company also provides data-driven insights to EV ecosystem players, including financiers and customers, helping to make EVs more accessible. Vecmocon has already enabled over 60,000 electric vehicles to hit the roads in India and, with BII’s support, plans to expand further into the commercial EV market.

The need for more electric vehicles in India is urgent. The country faces severe air pollution, and the government has set an ambitious target of achieving 30 percent EV penetration by 2030 as part of its EV30@30 initiative. Currently, EVs account for only around 6.4 percent of total vehicle sales in India. However, the widespread adoption of EVs faces several obstacles, including high upfront costs, limited charging infrastructure, and a lack of affordable financing options.

Sally Taylor, Director for Development, Climate, Science, and Technology at the British High Commission, commented, “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, the 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, noted, “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 decarbonization 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.”

Over the past year, BII has made several key investments to further India’s EV ecosystem. These include financing LoadShare, one of India’s largest last-mile logistics providers, to expand its electric two-wheeler fleet; investing in Euler Motors, a commercial EV manufacturer; and backing Turno, an EV distribution and financing platform aimed at small businesses and individuals. BII has also supported Battery Smart, a battery-swapping network for commercial electric two- and three-wheelers, and ChargeZone, which is building a network of over 10,000 EV charging stations by 2027.

In 2022, BII committed up to $250 million to a new passenger electric vehicle venture in partnership with Mahindra & Mahindra, further solidifying its commitment to the green mobility sector in India.

BII’s strategy in the EV sector forms part of its broader commitment to invest up to $1 billion in climate-mitigating initiatives and green technology innovations in India, marking a significant step toward supporting the country’s transition to a low-carbon economy.