BII Bullish on Indian EV Ecosystem, Expects to Invest USD 300 mn in 3 Yrs: MD Abhinav Sinha
British International Investment, the UK’s development finance institution, has set ambitious investment targets in the Indian electric vehicle (EV) sector. Abhinav Sinha, MD and Head of Technology & Telecoms at British International Investment (BII), shared insights into the company’s bullish outlook on the Indian EV landscape, with plans to channel an additional USD 300 million over the next three years.
BII has previously invested approximately USD 300 million in India’s EV market, supporting major players like the Mahindra group’s EV arm along with startups such as Euler Motors, Turno, and Battery Smart. The firm is optimistic about the prospects of further investments in EV manufacturing, components, and financing within India.
“India has quite an evolved auto market… On the EV side, the penetration currently lags behind the rest of the world… The overall penetration of EVs in India is about 6 percent, and we see it quickly expanding, double and more than double quite quickly,” Sinha commented during an interview.
Sinha addressed comparative perspectives and investment opportunities in India’s EV sector against global standards, affirming BII’s positive stance towards India’s potential to significantly increase its EV footprint. He suggested that by 2030, public transportation in India would see a “massive level” of EV penetration, with substantial growth in electric passenger vehicles as adoption rates soar.
“Even if it’s not as much as China, it’ll likely surpass Europe and the US in the way it’s going and with all the support from the government as well as the benefits of total cost of ownership,” Sinha added.
Elaborating on BII’s investments in India, Sinia revealed, “We have invested (USD) 300 million so far in this whole EV space… we’ve backed Mahindra in India, on their EV platform and that’s a very significant investment for us, almost USD 250-million.” Investments also include stakes in Euler Motors, Turno, and Battery Smart, highlighting BII’s commitment to fostering growth across various segments of India’s EV ecosystem.
Regarding future investment plans, Sinha was optimistic but noted the challenge in specifying an exact figure. He anticipates maintaining a similar investment pace, emphasizing the importance of early-stage investments in the burgeoning market. “It’s hard to say an exact number but we have invested USD 300 million over the last three years and I would expect a similar sort of pace going forward,” he stated.
BII is focusing its investments across the entire value chain of the Indian EV market, from manufacturing to components and financing, recognizing the sector’s need for substantial capital to achieve its potential. “Climate in general has the highest attention within BII, and EV is probably going to be the largest area for us to invest,” Sinha concluded, portraying a dynamic future for the Indian EV ecosystem backed by strategic investments and support.
