British International Investment (BII), the UK’s development finance institution, is optimistic about the Indian electric vehicle (EV) ecosystem and plans to invest an additional $300 million over the next three years. According to Abhinav Sinha, BII’s Managing Director and Head of Technology & Telecoms, the company has already invested around $300 million in India’s EV sector, supporting ventures like Mahindra’s EV division, Euler Motors, Turno, and Battery Smart.

India’s EV market, though currently lagging behind the global leaders, shows significant growth potential. Sinha highlighted that while EV penetration in India is around 6%, it is expected to double quickly. He emphasized that India could soon surpass Europe and the US in EV adoption, driven by government initiatives and the favorable total cost of ownership.

By 2030, BII anticipates substantial EV penetration in public transportation and increased adoption of electric passenger cars in India. This optimism is based on India’s evolving auto market and the proactive push from the government.

BII has made significant investments in various segments of the EV ecosystem, including a nearly $250 million investment in Mahindra’s EV platform. Other notable investments include Euler Motors, a commercial EV manufacturer; Turno, an EV distribution and financing firm; and Battery Smart, a battery-swapping network.

Looking ahead, BII plans to maintain its investment pace, focusing on early-stage investments in manufacturing, components, and financing within the EV value chain. Climate-related investments, particularly in the EV sector, remain a top priority for BII in India.

Source: Business Standard