India’s EV Sector Attracts Rs. 25,000 Crore Investments Till July 2021

Highlights :

  • Ev sector recorded a total of Rs. 25,045.31 crores of investment during January-July 2021.
  • Electric commercial vehicles topped the list with 32% of investments.
  • E4W and E2W segments recorded 28% and 23% of investments, respectively.
India’s EV Sector Attracts Rs. 25,000 Crore Investments Till July 2021

Indian EV sector recorded Investments of approx. Rs. 25,000 crore during the first seven months of this year.

The second wave of Covid-19 was highly destructive to almost every sector of the country. However, the electric vehicle (EV) and e-mobility sector says a different story, as it has witnessed numerous financial deals and investments.

India’s e-mobility sector recorded a total of Rs. 25,045.31 crores of investment during January-July 2021, collectively from E2Ws, E4Ws, EV component makers, electric commercial vehicles, and last-mile delivery companies.

Out of which 32% of investments were led by electric commercial vehicles. Delhi-based e-mobility startup Oye! Rickshaw invested Rs. 3,700 crore and accounted for 15% of the total investment. Omega Seiki mobility recorded for 9% of the total investments. The EV subsidiary of Ashok Leyland, Switch Mobility invested Rs 1,485 crore.

After commercial vehicles, the E4Ws segment attracted an investment of 28%, where Mahindra & Mahindra invested 3000 crores i.e. 12% of the total. Additionally, M&M has already invested Rs. 1,700 crores and also allocated another Rs. 500 crores for a new research and development center.

Meanwhile, South Korea’s Hyundai did two investments in these seven months. The first investment of Rs. 32 crore was made in February, while the second investment of Rs. 743.31 crore was announced in July 2021.

Following, the E2W segment reported 23% of the total announcements, where Triton EV led the investment with 8%, TVS Motor Company invested 4% and Hero Electric, Ampere, Ather Energy invested 3% each in the seven months of 2021.

Talking about the EV components manufacturers, they recorded a total investment of 19% led by the companies like C4V, Lohum, Ruchira Green Earth, and Sona Comstar. While, included with the foreign investment of 16% of the total from a US-based C4V, a leading company in the lithium-ion cell manufacturing sector.

“Given the nascent stage of the EV technology evolution, sizable investments are required in R&D and product development, both on the automobile platforms and battery technology. In the backdrop of tightening emissions and increasing awareness of the green environment, EVs are the way forward for the automobile industry. Hence, it is attracting investments from entrenched OEMs and their vendors, as well as startups like OLA and Ather to gain a foothold in the market.

The demand incentives provided under FAME II (which have recently been increased), the launch of state policies, and rising fuel prices are making the total cost of ownership of EVs more attractive,” says the vice-president of ICRA, Mr. Shamsher Dewan.

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Bhoomika Singh

Bhoomika is a science graduate, with a strong interest in seeing how technology can impact the environment. She loves covering the intersection of technology, environment, and the positive impact it can have on the world accordingly.