E-Mobility_Finance & Investment special-Jan-Feb-2024

BUSINESSNEWS

INVESTMENT

PURE EV Concludes $8 Million Funding Round and Nears Completion of $25 Million Raise

PURE EV has successfully secured $8 million in funding from a consortium of investors. The fundraising round was led by Bennett Coleman and Company Limited, Hindustan Times Media Ventures, and Ushodaya Enterprises Private Limited, along with participation from existing investors and high net-worth individuals PURE EV is currently in the final stages of concluding its Series A1 funding round, which is set to total $25 million with the involvement of a foreign institutional investor Concurrently, the company is engaged in discussions with potential investors from Dubai, Hong Kong, and Singapore for its Series A2 funding, aiming to raise $15 million

Corrit Electric Gains ₹5 Crores Funding Boost For EV Expansion

Corrit Electric, a prominent electric vehicle startup, has raised ₹5 crores in funding from Porush Jain, the creator of Sportskeeda.com. As an angel investor and entrepreneur, Jain has expressed confidence in Corrit Electric’s mission to provide clean, affordable, and efficient electric two-wheelers in the Indian market This investment will empower Corrit Electric to accelerate its operations expansion and advance research and development initiatives.

A Investment from Mahanagar Gas Limited

Mahanagar Gas Limited (MGL) has finalized a binding Share Subscription Agreement (SSA) with 3ev Industries Pvt Ltd (3ev), marking a substantial Rs. 96 crore investment. The agreement, signed at MGL’s offices in Mumbai, represents the entire Series A equity investment and is anticipated to be implemented in phases, subject to standard closing provisions The initial tranche of investment is slated for completion by the end of this month. Established in 2019 in Bangalore, Karnataka, 3ev specializes in manufacturing L5 category three-wheel cargo and passenger vehicles, along with ICE-to-EV converted electric vehicles

Ascend Capital Secures ₹50 Crore Series A Funding To Propel EV Financing Expansion

Ascend Capital, a Non-Banking Financial Company (NBFC) based in Jaipur and focusing on Electric Vehicle (EV) financing, has raised ₹50 crore in a Series A funding round, with Infoedge Ventures and Asha Ventures leading the investment Co-founded by Lokesh Chandra and Gaurav Maheshwari, both alumni of IIT Madras, Ascend initially focused on a single geography, becoming a prominent player while maintaining profitability With this funding round, the company plans to expand its portfolio across multiple geographies, aiming to achieve an AUM of ₹300 crore in the next two years

Zapp EV Secures Funding of up to $10 Million to Initiate Production and Global Launch of the i300 Electric Urban Motorcycle

Zapp Electric Vehicles Group Limited, the British electric vehicle brand dedicated to transforming urban mobility, has recently entered into a standby equity purchase agreement (SEPA) with an affiliate of Yorkville Advisors Global, LP (the Investor) The agreement aims to provide financial support for the production and launch of the i300, Zapp’s high-performance electric urban motorcycle Under the SEPA, the Investor will initially advance $1 5 million to Zapp in two tranches, subject to certain conditions such as the filing of the Company’s Annual Report on Form 20-F for the fiscal year ended September 30, 2023, and the effectiveness of an SEC registration statement registering the resale of shares issuable under the SEPA

Advance Mobility Secures $2 Million Seed Funding Led by Finvolve to Revolutionize Ridesharing Mobility and Expand Nationwide Presence

Advance Mobility Private Limited, a dynamic startup in the ridesharing mobility sector, has successfully closed a seed funding round of $2 million led by Finvolve, with participation from India Accelerator While the valuation remains undisclosed, this funding signifies a significant milestone for the company Specializing in scalable fleet operations on the Uber platform, Advance Mobility is dedicated to addressing challenges across the entire value chain, from market players and customers to drivers This approach revolutionizes fleet operations, paving the way for enhanced efficiency and customer satisfaction With this infusion of capital, Advance Mobility aims to expand its presence beyond Mumbai and Pune to other cities in India Currently operating with a fleet of 425 CNG cars, the company has witnessed rapid growth since its pre-round stage

BUSINESSNEWS

INVESTMENT

Mufin Green Finance Rides High With ₹140 Crore

Funding Injection For EV Revolution

Mufin Green Finance has successfully concluded its Series B equity funding round, securing ₹140 crore, supplementing the ₹530 crore debt financing obtained in the previous fiscal year The equity infusion received substantial support from notable family offices, while leading financial institutions, including State Bank of India, IREDA, AU Small Finance Bank, ICICI Bank, and Kotak Mahindra Investments, contributed to the debt funding This significant capital injection is poised to fuel Mufin’s growth and expansion plans in 2024, particularly in the western region of India.

OTO Secures $10 Million Funding To Transform Two-Wheeler Mobility In India

OTO, a prominent digital commerce and lending platform for two-wheelers in India, has secured $10 million (Rs 83 crore) in funding. The investment round, led by GMO Venture Partners, saw participation from existing investors like Turbostart, Indian cricketer KL Rahul, Prime Venture Partners, Matrix Partners, 9Unicorns funds, and other family offices Co-founded by serial entrepreneurs Sumit Chhazed and Harsh, OTO aims to revolutionize the buying, financing, and resale experience for approximately 20 million annual two-wheeler buyers in India The startup introduces the Super EMI plan, reducing twowheeler EMIs by up to 30% and providing flexibility for customers to upgrade or retain their vehicles

River’s Series B Funding Hits $40 Million Mark With Yamaha Motor At The Helm

Bengaluru-based electric vehicle (EV) startup River has secured $40 million in Series B funding led by Yamaha Motor Co, Japan, with participation from existing investors Al-Futtaim Automotive, Lowercarbon Capital, Toyota Ventures, and Maniv Mobility. River introduced its first product, the SUV scooter “Indie,” in October 2023 The Indie was designed and developed at River’s Bengaluru R&D facility and manufactured at its factory in Hoskote The first River store was opened in Bangalore in January 2024.

Force Motors Unveils Ambitious ₹2,000 Crore Investment Plan For EV Development

Automaker Force Motors intends to invest approximately ₹2,000 crore in the next three to four years, covering sustainability initiatives and the development of electric vehicles (EVs), according to the Managing Director, Prasan Firodia The company aims to gradually introduce electric versions of its van ranges while continuing to produce conventional-engine ,

Ventures, Accelerating Expansion in India’s Electric Vehicle Market

Snap-E Cabs, an electric vehicle (EV) ride-hailing platform, has secured a significant investment of $2 5 million in a Pre-Series A funding round led by Inflection Point Ventures The funding round aims to support Snap-E Cabs’ ambitious expansion plans, including talent acquisition, technological enhancements, and geographical expansion. Currently operating with 600 EVs in Kolkata, Snap-E Cabs plans to expand its fleet and services to additional cities, aiming for significant scale-up in operations by the end of FY 25

Electrifi Mobility Raises ₹25 Crore To Drive India’s Electric Vehicle Revolution

Electrifi Mobility, a Gurugram-based company specializing in commercial EV leasing and asset management, has successfully raised ₹25 crore in seed-stage funding. The investment comes from ADB Ventures, AdvantEdge founders, and other participants The funds, a combination of equity and debt, will be utilized to support the company’s expansion initiatives, contributing to India’s shift towards sustainable mobility

Servotech Power Systems Lands ₹120 Crore Deal For 1800 DC Fast EV Chargers With BPCL

Servotech Power Systems Ltd , has successfully clinched a major order worth ₹120 Crores for the supply of 1800 DC Fast EV Chargers from Bharat Petroleum Corporation Limited (BPCL) Under this groundbreaking deal, Servotech Power Systems will handle the manufacturing, supplying, installing, and strategic deployment of 1800 EV chargers throughout the nation, with a focus on BPCL petrol pumps in major cities The project, which encompasses two charger variants – 60 kW and 120 kW, is expected to be completed by the end of 2024.

BUSINESSNEWS

JAN-FEB 2024

POLICY

India Boosts Clean Mobility: FAME India Scheme

Phase II Outlay Enhanced To ₹11,500 Crore With Subsidies Till March 31, 2024

The Ministry of Heavy Industries, Government of India, has announced a significant boost for clean mobility by enhancing the scheme outlay of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) India Scheme Phase II. The scheme’s outlay has been increased from ₹10,000 crore to ₹11,500 crore This enhancement aims to promote the adoption of electric two-wheelers (e-2W), electric three-wheelers (e-3W), electric four-wheelers (e-4W), e-Buses, and Electric Vehicle Public Charging Stations (EV PCS). The increased allocation demonstrates the government’s commitment to supporting the transition to electric mobility It’s important to note that the scheme is fund and term-limited Subsidies for demand incentives will be applicable to e-2W, e-3W, and e-4W sold until March 31, 2024, or until funds are exhausted, whichever comes earlier This move aligns with the government’s ongoing efforts to encourage the widespread adoption of electric vehicles and strengthen the infrastructure for clean transportation

Electric Vehicle Manufacturers Received ₹5,790 Crores Subsidy For Selling 13,41,459 EVs In FAME India Scheme Phase-II

The Ministry of Heavy Industries has released the budgetary allocation and expenditure details for the Phase-II of the Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles (FAME) program Additionally, the Ministry sanctioned 2,877 electric vehicle charging stations in 68 cities across 25 States/UTs Out of these, 148 charging stations are operational ₹800 crores capital subsidy was sanctioned to three Oil Marketing Companies for establishing 7,432 public charging stations. Under FAME-II, a subsidy of ₹5790 crores has been provided to electric vehicle manufacturers based on the sale of 13,41,459 electric vehicles (2-wheelers, 3-wheelers, and 4-wheelers) as of January 31, 2024 Moreover, 6,862 electric buses were sanctioned for intracity operations, with 3,487 already supplied to State Transport Undertakings

THINK TANK

India Witnesses Soaring Growth With A 49.25% Surge In Electric Vehicle Sales In 2023

In a significant development for the electric vehicle (EV) sector in India, the Federation of Automobile Dealers Association (FADA) has reported a remarkable 49 25% growth in EV sales during the calendar year 2023 The surge, analyzed across various categories, reflects a substantial shift towards sustainable and eco-friendly transportation. The combination of robust sales growth and supportive government initiatives signifies a promising trajectory for the electric vehicle market in India As the nation continues to embrace sustainable transportation solutions, these measures are anticipated to further accelerate the adoption of electric vehicles across the country

Indian Automotive Aftermarket Eyes USD 14 Billion By 2028, Reveals ACMA-EY Study

ACMA, India's auto component apex body, revealed findings from its Global Automotive Aftermarket Research Report at Bharat Mobility Global Expo 2024 The Indian aftermarket, valued at USD 10 billion in 2023, anticipates reaching USD 14 billion by 2028 With a focus on seven product categories, growth is driven by a burgeoning vehicle parc, expected to hit 340 million Export opportunities worth USD 35 billion across 39 countries highlight lucrative avenues for Indian aftermarket players

BUSINESSNEWS

JAN-FEB 2024

TENDER PARTNERSHIP

Chennai’s Green Revolution: IRT Issues Tender

For 100 Electric Buses And Charging Infrastructure

In a bold move towards sustainable urban mobility, Chennai has initiated a tender for the procurement of 100 electric buses and the development of associated charging infrastructure The Institute of Road Transport (IRT), acting on behalf of the Metropolitan Transport Corporation (MTC) of Chennai, has issued this transformative tender. This ambitious tender not only aligns with Chennai’s commitment to sustainable urban living but also positions the city as a potential role model for other Indian urban centers seeking to transition towards eco-friendly public transportation

Volkswagen And Mahindra Forge Groundbreaking Partnership For E-Mobility Advancement In India

Volkswagen Group and Mahindra & Mahindra Ltd (M&M) have inked a milestone supply agreement concerning components of Volkswagen’s Modular Electric Drive Matrix (MEB) for Mahindra’s bespoke electric platform, INGLO, marking a significant stride in their joint commitment to e-mobility collaboration This agreement encompasses the provision of specific electric components alongside unified cells

Ultraviolette And HPCL Collaborate To Establish Nationwide EV Charging Network

Ultraviolette, a trailblazer in forward-looking electric mobility solutions and energy technology, has entered into a Memorandum of Understanding (MoU) with Hindustan Petroleum Corporation Limited (HPCL) during the Bharat Mobility Global Expo 2024 The agreement aims to deploy electric vehicle charging stations at key HPCL fuel stations throughout India The partnership aims to create an electric vehicle charging network at HPCL’s fuel stations, enabling nationwide travel for electric motorcycles.

MG Motor India Joins Forces With BatX Energies For Pioneering Off-Grid Solar-EV Charging Station

MG Motor India has joined forces with BatX Energies, a greenfield startup, to unveil India’s inaugural off-grid solar-EV charging station, powered by repurposed MG EV batteries Developed by BatX Energies in collaboration with MG, the second-life battery storage system aims to give used MG EV batteries a new lease on life The solar EV charging station, currently in the industrialization phase, operates off-grid and is designed to charge 2-wheelers to 4-wheelers

Euler Motors And Magenta Mobility Join Forces For 2,000 HiLoad EVs, Ushering In A Sustainable Transport Era

Euler Motors, an electric vehicle company, and Magenta Mobility, an integrated electric mobility solutions provider, have expanded their collaboration with a new order for 2,000 HiLoad EVs. The upcoming EVs will be produced at Euler Motors’ manufacturing hub in Palwal, Haryana, and are anticipated to be delivered within the next 18 months These ‘Made in India’ vehicles are designed to enhance earnings by 30% compared to other 3W cargo options in the country, catering to various use cases, terrains, and weather conditions

BUSINESSNEWS

JAN-FEB 2024

PARTNERSHIP

Omega Seiki And Attero Forge Groundbreaking Partnership To Revolutionize EV Sector And Battery Recycling

Omega Seiki Private Limited (OSPL), a prominent player in the EV industry, and Attero, a leading expert in e-waste management and lithium-ion battery recycling, have joined forces in a monumental move for both sectors This MoU signifies a significant advancement in the realms of electric vehicles and lithium-ion battery recycling With over 10,000 EVs already in operation by Omega Seiki, Attero will play a pivotal role in repurposing their batteries for energy storage, underscoring the shared commitment of both entities to address the entire lifecycle of EV components and promote responsible EV battery solutions

Greenfuel Energy Solutions Forms Strategic Partnership With EVE Energy For Advanced Lithium Battery Technology

Greenfuel Energy Solutions, a leading provider of clean mobility solutions and Energy Storage Systems (ESS) in India has formed a strategic partnership with EVE Energy, a global leader in lithium battery technology EVE Energy, known for its core technologies and comprehensive solutions in the lithium battery industry, offers cylindrical batteries with NCM and LFP material systems, providing high safety, long-endurance, long-cycle, and wide-temperature range advantages With over 2 1 billion cylindrical batteries supplied globally, EVE Energy ranks among the world’s leaders, holding the top position in China

ITC And Eicher Join Forces For Sustainable Electric

Mid-Mile Transportation

Eicher Trucks and Buses, a division of VE Commercial Vehicles (VECV) Limited, has collaborated with ITC Limited to advance sustainable and eco-friendly mid-mile logistics solutions at various ITC locations in India In this partnership, ITC, along with its vendor partners, will gradually deploy over 100 units of India’s inaugural 5 5-tonne electric vehicle, the Eicher Pro 2055 EV, for mid-mile transportation from ITC warehouses to customer destinations

OTHER

Government Launches Pilot Project For Green Hydrogen In Transport Sector

The Ministry of New and Renewable Energy, Hydrogen Division, announced the initiation of the Scheme for Pilot projects aimed at implementing Green Hydrogen in the Transport Sector under the National Green Hydrogen Mission (NGHM) The primary objectives of this scheme are manifold Firstly, it seeks to facilitate the gradual introduction of Green Hydrogen as a fuel for buses, trucks, and four-wheeler vehicles on a trial basis. Additionally, the scheme aims to validate the technical feasibility and performance of these vehicles under real-world operational conditions, while also assessing their economic viability. It also aims to evaluate the effectiveness of hydrogen refuelling stations and identify areas for improvement The safety and security of hydrogen-based vehicles and refuelling stations will also be rigorously demonstrated and evaluated under this scheme

Omega Seiki Mobility To Manufacture Green Hydrogen-Powered Vehicles In India

Omega Seiki Mobility (OSM) is partnering with a French company to manufacture green hydrogen-powered small commercial vehicles, including three-wheelers, in India. The joint entity, Hydrogen Intelligence SA, will be based in France, with a subsidiary in India OSM founder Uday Narang mentioned that the company will showcase a hydrogen-powered three-wheeler at the Hyvolution show in Paris The joint venture, with OSM owning 50%, aims to produce 5,000 vehicles per month initially, scaling up to 10,000 vehicles a month by 2026, with a manufacturing facility in Tamil Nadu expected to be commissioned by March 2025

Delhi Unveils 350 New Electric Buses In Major Green Transit Initiative

Delhi Lieutenant Governor V K Saxena and Chief Minister Arvind Kejriwal launched 350 electric buses, increasing the total to 1,650 and reinforcing the city’s fight against pollution Out of these, 300 joined the cluster bus fleet, while 50 integrated into the Delhi Transport Corporation fleet Saxena highlighted the addition as a significant step in controlling pollution, emphasizing the city’s transition from diesel and petrol Blue Line buses to CNG buses and now electric ones The effort is to gradually replace CNG buses with electric ones in the overall bus fleet, contributing to Delhi’s environmental sustainability

Energizing Progress: Navigating the Financial Landscape of

MOBILITY INFRASTRUCTURE DEVELOPMENT E MOBILITY INFRASTRUCTURE DEVELOPMENT

The electrification of transportation brings with it not just a shift in technology but a fundamental transformation in infrastructure Building the necessary e-mobility infrastructure, such as charging stations and battery swap networks, requires a strategic understanding of the financial landscape In this article, we delve into the challenges and opportunities associated with funding e-mobility infrastructure, exploring investment models and avenues that can propel progress in this dynamic sector

Understanding the Financial Aspects

1. Capital Intensity:

The development of e-mobility infrastructure involves significant capital investment Charging stations, battery swap networks, and associated technologies require substantial upfront funding This capital intensity can be a barrier for individual entities, necessitating innovative financing solutions and collaborative models

2. Operational Costs:

Beyond the initial investment, there are ongoing operational costs associated with maintaining and upgrading e-mobility infrastructure Energy costs, maintenance, and technology updates contribute to the overall financial considerations Sustainable funding models must account for both the initial capital expenditure and the recurring operational expenses

Investment Opportunities and Models

1. Public-Private Partnerships (PPPs):

One of the most prevalent models for funding e-mobility infrastructure is through Public-Private Partnerships (PPPs) Governments collaborate with private entities to share the financial burden and expertise This model ensures that public infrastructure benefits from private sector efficiency while providing investors with a stable and regulated environment

2. Venture Capital and Private Equity:

Venture capital and private equity firms play a crucial role in funding earlystage e-mobility infrastructure projects These investors are often drawn to innovative technologies and business models Startups focusing on novel solutions for charging infrastructure or battery swap networks can attract venture capital funding, driving innovation in the sector

3. Government Incentives and Subsidies:

Governments worldwide recognize the importance of e-mobility and often provide incentives and subsidies to promote infrastructure development These can include tax credits, grants, or direct subsidies for installing charging stations Leveraging these government incentives can significantly alleviate the financial burden on infrastructure developers

4. Green Bonds and Sustainable Financing:

The rise of sustainable finance has opened avenues for funding e-mobility infrastructure Green bonds, specifically earmarked for environmentally friendly projects, can attract investment from socially responsible investors E-mobility infrastructure projects aligning with sustainability goals have the potential to tap into this growing pool of funds

Challenges and Mitigation Strategies

1. Uncertain Revenue Models:

One of the challenges in funding e-mobility infrastructure is the uncertainty surrounding revenue models Charging station operators, for instance, may face challenges in predicting user demand Diversifying revenue streams, such as offering additional services or partnering with commercial establishments, can mitigate this uncertainty

2. Standardization and Interoperability:

The lack of standardization and interoperability in the e-mobility sector poses a challenge for investors Infrastructure developers may hesitate to invest in technologies that could become obsolete due to evolving standards Collaboration among industry stakeholders and adherence to emerging standards can address this challenge

Conclusion: Propelling E-Mobility Infrastructure

Forward

As we navigate the financial landscape of e-mobility infrastructure development, it becomes clear that a combination of collaborative models and innovative financing solutions is essential Governments, private investors, and the broader e-mobility ecosystem must work together to overcome challenges and capitalize on opportunities By embracing diverse funding models, from public-private partnerships to sustainable financing options, we can collectively energize progress in the e-mobility sector As the wheels of innovation turn, strategic financial navigation will be the driving force propelling us toward a sustainable and electrified future

CONVERSATION

NAVIGATING FINANCIAL TERRAIN IN THE ELECTRIC VEHICLE INDUSTRY

As the CFO of Omega Seiki Mobility, which specializes in electric commercial and passenger 3wheelers, how do you approach financial planning and strategy in the rapidly evolving EV market?

My approach to financial planning and strategy in the rapidly evolving Electric Vehicle (EV) market is cantered on a comprehensive and adaptive framework In terms of financial planning, we employ scenario planning, developing multiple financial models based on diverse assumptions regarding the future of the EV market This includes considerations such as the pace of adoption, government policies, and ongoing technological advancements The goal is to establish a robust foundation that enables us to be prepared for a wide range of potential market scenarios

Flexibility is a key element incorporated into our financial plans. Given the rapid evolution of the EV market, the ability to make swift adjustments is crucial. This flexibility ensures that we can adapt our strategies in response to changing market dynamics, technological shifts, and customer preferences. Furthermore we emphasize data-driven decision-making, utilizing analytics on sales, costs, customer behaviours, and overarching market trends This data-centric approach empowers us to make informed financial decisions, optimizing our strategies for sustainable growth

Turning to financial strategy, our focus extends beyond mere growth, emphasizing long-term profitability In recognition of the dynamic nature of the EV market, we invest significantly in research and development (R&D) This strategic allocation of resources ensures that we stay at the forefront of technological advancements, encompassing new battery technologies, innovative vehicle designs, and cutting-edge manufacturing processes

Strategic partnerships play a pivotal role in our financial strategy Collaboration within the EV

NEERAJ KUMAR BUDHIRAJA

CFO

Omega Seiki Mobility

KEY HIGHLIGHTS

Adaptive Financial Planning: Employing scenario planning and flexibility to prepare for diverse market scenarios, ensuring robustness in the face of rapid EV market evolution

Strategic Investments and Partnerships: Prioritizing long-term profitability through R&D investments and strategic partnerships to stay ahead in the competitive EV sector

Government Policy Impact: Leveraging government incentives and initiatives to drive sales, mitigate risks, and ensure compliance, while navigating challenges posed by policy uncertainties

industry allows us to share costs, access emerging technologies and expand our market reach Additionally, we are keenly attentive to government incentives for electric vehicles, capitalizing on opportunities to offset higher upfront costs for consumers and stimulate market demand

In considering additional dimensions, risk awareness is paramount, particularly in the early stages of the EV market's development We remain vigilant to potential disruptions, aligning our risk management strategies with a forwardlooking perspective Furthermore, understanding the evolving regulatory landscape is essential for maintaining operational integrity and navigating compliance complexities Finally, recognizing the global nature of the EV market, we explore opportunities for expansion into new markets, aligning our operations with emerging growth trends and diversifying our presence

What are the biggest investment challenges and opportunities you face in the electric 3-wheeler segment, and how does Omega Seiki Mobility navigate these?

In the realm of electric 3-wheelers, Omega Seiki Mobility grapples with formidable investment challenges while actively pursuing promising opportunities to maintain a competitive edge in the market One of the primary hurdles involves the high upfront costs associated with battery technology, a factor that often results in elevated initial vehicle prices compared to traditional fuelpowered alternatives To navigate this challenge, the company strategically focuses on cost optimization measures, including streamlining manufacturing processes, exploring alternative battery chemistries, and negotiating bulk purchase agreements This concerted effort aims to enhance affordability for potential customers and fleet operators, thereby fostering wider adoption of their electric 3-wheelers.

A further challenge lies in the limited availability and accessibility of charging infrastructure, particularly in developing markets To address this, Omega Seiki Mobility has embarked on an ambitious strategy to expand charging infrastructure This involves forming strategic partnerships with relevant stakeholders to establish a robust network of charging stations Additionally, the company explores innovative solutions such as battery swapping to alleviate range anxiety and promote the widespread adoption of their electric vehicles

Despite these challenges, Omega Seiki Mobility recognizes significant opportunities within the electric 3-wheeler segment The escalating global demand for sustainable transportation solutions, driven by environmental concerns, fuel price volatility, and government initiatives, positions the company favourably. To capitalize on this growing demand, Omega Seiki Mobility aligns its product offerings with market needs while emphasizing the environmental benefits of electric 3-wheelers

Furthermore, the company sees potential in the ongoing advancements in battery technology and economies of scale, which are anticipated to lead to a reduction in production costs Omega Seiki Mobility strategically invests in research and development, ensuring that its electric 3-wheelers remain at the forefront of technological innovation, thus contributing to long-term cost reduction and increased accessibility

In seizing expansion opportunities, Omega Seiki Mobility is targeting specific markets, particularly in emerging economies characterized by growing populations and urbanization By tailoring their product offerings to suit local preferences and needs, the company aims to tap into the vast potential for electric 3-wheeler adoption, especially in the realms of last-mile logistics and passenger transport

As the company navigates the electric 3wheeler segment, Omega Seiki Mobility

recognizes the necessity of staying abreast of evolving government regulations and subsidies The dynamic nature of the regulatory landscape demands an agile approach, enabling the company to adapt its strategies swiftly to comply with changing incentives and maintain a competitive edge

Lastly, acknowledging the specialized skills required for developing and maintaining electric vehicles, Omega Seiki Mobility focuses on talent acquisition and training By investing in upskilling existing employees and attracting qualified personnel, the company strives to build a skilled and adaptable workforce capable of meeting the unique challenges posed by the electric 3-wheeler segment Through this comprehensive approach, Omega Seiki Mobility endeavours to not only navigate challenges but also leverage opportunities for sustained growth and success in the dynamic electric vehicle market

How have government policies and incentives in India impacted the financial strategies of Omega Seiki Mobility, particularly in the electric vehicle sector?

I have closely monitored the impact of government policies and incentives in India on our financial strategies, particularly within the electric vehicle sector Positive influences have been evident, notably through initiatives like FAME II (Faster Adoption and Manufacturing of Electric Vehicles), which provided demand incentives for electric vehicles This directly translated into increased sales and market penetration for Omega Seiki's electric 3wheelers The Production-Linked Incentive (PLI) schemes for electric vehicle manufacturing have been a financial boon, offering our company assistance that lowers production costs and enhances competitiveness Additionally, government efforts aimed at expanding charging infrastructure have addressed range anxiety concerns, bolstering customer confidence and potentially leading to higher sales The establishment of long-term EV roadmaps by the government has also provided a degree of predictability, enabling us to make informed investment decisions in the sector

However, challenges have surfaced, including the potential impact of policy uncertainty due to frequent changes or delays in implementation

This dynamic environment necessitates constant adaptation and flexibility in our financial planning Overreliance on demand incentives poses another challenge, creating a price-sensitive market where raising prices could lead to a loss of ground to competitors Government schemes that prioritize specific vehicle categories, such as 2-wheelers over electric 3-wheelers, can affect our access to certain benefits Furthermore, bureaucratic hurdles in complying with complex application and documentation processes for incentives

prove to be time-consuming and resourceintensive.

To navigate these challenges, we employ strategic measures Diversification across multiple electric vehicle segments is considered, allowing us to benefit from a broader range of incentives Emphasizing innovation in our product offerings and features helps reduce dependence on price-based competition and enables us to cater to premium segments Geographical expansion into regions with supportive policies and strong EV adoption potential is also explored to mitigate dependence on specific government schemes in any single market Additionally, advocating for industry-wide support through collaboration with industry associations and stakeholders aims to influence policy decisions, fostering a more stable and predictable environment Lastly, building operational efficiency through streamlined processes and cost optimization ensures that Omega Seiki remains competitive, even in the face of potential reductions in subsidies

responsible resource usage and ethical labor conditions throughout the manufacturing process.

Can you discuss the importance of sustainable financing in the EV manufacturing sector and how Omega Seiki Mobility incorporates this into its business model?

In the context of the electric vehicle (EV) manufacturing sector, sustainable financing emerges as a pivotal factor for several compelling reasons, and at Omega Seiki Mobility, we recognize its significance within our business model The inherent high upfront costs associated with EV manufacturing, particularly in relation to expensive battery technology, necessitate financing methods that align with the unique financial demands of our industry Sustainable financing offers innovative solutions such as green bonds, impact investing, and climate-aligned loans, specifically tailored to address the financial challenges inherent in EV production

Moreover, sustainable financing aligns with the long-term sustainability goals of the EV sector, which seeks to combat climate change As a company committed to environmental and social responsibility, incorporating sustainable financing instruments becomes imperative These financing mechanisms prioritize companies with strong ESG (Environmental, Social, and Governance) practices, encouraging

In the dynamic landscape of financing attracting investors has become a critical aspect, and sustainable financing provides a gateway to a growing pool of environmentally conscious investors By incorporating sustainable practices into our business model, Omega Seiki Mobility can not only appeal to this investor base but also achieve a stronger financial standing, ensuring sustainable growth and profitability

A key advantage of sustainable financing lies in the access it provides to government incentives specifically designed for sustainable projects Omega Seiki Mobility stands to benefit from grants, subsidies, and tax breaks, all of which can significantly reduce costs and enhance overall profitability, contributing to the longterm success of our business

As Omega Seiki Mobility explores the integration of sustainable financing into its business model, potential strategies may include issuing green bonds earmarked for specific sustainable projects, such as the development of cleaner battery technologies Collaborating with impact investors who prioritize both environmental and social impact alongside financial returns is another avenue that aligns with our sustainability goals Seeking climate-aligned loans from financial institutions committed to sustainability could secure favourable terms based on our ESG performance

To incorporate sustainable financing effectively, transparency and reporting become essential components Regularly publishing sustainability reports, showcasing our progress towards environmental and social goals, not only enhances investor confidence but also attracts more sustainable financing opportunities. Challenges, such as the potential for a green premium due to administrative and verification processes, are acknowledged. However, we believe that the long-term benefits including risk mitigation and enhanced appeal to sustainable investors, will outweigh these initial costs

The EV market is known for its rapid changes and uncertainties. How do you manage financial risks in such a dynamic environment?

In the ever-evolving electric vehicle (EV) market, effectively managing financial risks is paramount in ensuring the company's resilience and sustained success Embracing a multifaceted approach, I employ various strategies to navigate uncertainties inherent in this dynamic environment

Firstly, diversification is a key element of our risk management strategy We strategically diversify our product portfolio, offering a range of electric models tailored to different customer segments and usage needs This deliberate approach mitigates the risk associated with overreliance on the success of any single product Additionally, our geographic expansion into new markets with growth potential and supportive policies helps reduce dependence on the performance of any single market, enhancing our overall resilience

To address the rapid changes and uncertainties in the EV market, we implement scenario planning. Developing multiple financial plans based on different assumptions about future market conditions, including EV adoption rates, technological advancements, and government policies, enables us to be flexible and adapt to various scenarios Regular updates and stresstesting of these plans ensure ongoing relevance and provide guidance for proactive decision-making

Maintaining financial discipline is another crucial aspect of our risk management strategy We prioritize a healthy cash flow buffer to withstand unexpected setbacks or market downturns Strict cost controls and optimized production processes improve efficiency and reduce expenses Additionally, we utilize financial instruments such as hedging to mitigate risks associated with currency fluctuations or raw material price volatility

Strategic agility is inherent in our approach We continually monitor market trends, competitor activities, and regulatory changes to identify emerging risks and opportunities A flexible organizational structure allows us to adapt quickly to changing market conditions and implement new strategies Fostering a culture of innovation and continuous improvement ensures that we stay ahead of the competition and embrace technological advancements

Collaboration and partnerships play a crucial role in risk mitigation We actively partner with other companies in the EV ecosystem, such as battery manufacturers, charging infrastructure providers, and technology companies, to share resources, expertise, and risks Collaboration with industry associations and government agencies enables us to influence policy

decisions and advocate for supportive measures benefiting the entire EV sector.

Transparency and communication are foundational principles in our risk management strategy Regularly communicating financial risks and uncertainties to stakeholders, including investors, employees, and the board of directors, fosters a culture of transparency and trust This ensures that everyone is aligned with the company's risk management strategy and is aware of potential challenges and opportunities

Continuous learning is integral to our approach Staying updated on the latest developments in the EV market through industry conferences, market research, and engagement with experts enables us to make informed decisions Encouraging continuous learning and development within the organization ensures that every team member possesses the skills and knowledge necessary to navigate the dynamic environment of the EV market

Looking forward, what financial trends do you foresee in the electric vehicle industry, especially in the context of commercial and passenger 3-wheelers?

Looking ahead, several financial trends are anticipated in the electric vehicle (EV) industry, with a specific focus on commercial and passenger 3-wheelers Positive trends include the anticipated growth of the market, driven by increasing demand for cleaner transportation solutions, government incentives, and decreasing battery costs. The introduction of flexible subscription models for vehicle access and battery usage is expected to attract budgetconscious customers while generating recurring revenue for manufacturers. Data monetization through the collection and analysis of vehicle usage data could unlock new revenue streams, such as fleet management solutions and targeted advertising Integrating financial technology solutions like digital payments and blockchain technology is likely to streamline transactions

and enhance the overall customer experience. Furthermore the industry might witness consolidation through mergers and acquisitions, leading to economies of scale, increased resource access, and accelerated technological advancements

However, challenges and uncertainties persist, including intensified competition that may pressure profit margins and necessitate ongoing innovation Sustainable and ethical sourcing of critical raw materials for battery production remains a concern, impacting costs and supply chain management The pace of charging infrastructure development may not align with EV adoption rates, potentially limiting market growth in certain regions Geopolitical risks, such as trade tensions, supply chain disruptions, and changes in government policies, could introduce uncertainties affecting financial performance

In the context of 3-wheelers, specific considerations come into play Segment differentiation, addressing diverse needs within the commercial and passenger 3-wheeler segments, such as cargo capacity, passenger comfort, and range, becomes crucial for targeted marketing and market share capture The integration of efficient and widely available battery swapping infrastructure is anticipated to significantly enhance the adoption of electric 3wheelers, especially in regions with limited access to traditional charging stations Moreover, a focus on developing cost-effective electric 3-wheeler models is essential to broaden accessibility and accelerate market penetration

To navigate these trends and challenges effectively, Omega Seiki Mobility must remain vigilant and adaptable By proactively adjusting financial strategies to align with emerging opportunities and challenges, the company can secure its position in the evolving electric vehicle landscape. Whether through innovative financial models, sustainable sourcing practices or strategic market positioning Omega Seiki Mobility has the potential to thrive in the dynamic and transformative future of the electric 3-wheeler sector

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CONVERSATION

NAVIGATING EV INVESTMENTS: ICRA'S INSIGHTS INTO FINANCIAL EVALUATION AND MARKET DYNAMICS

Given ICRA Limited's role in credit rating and investment information, how do you assess the creditworthiness and investment potential of companies in the electric vehicle (EV) sector?

While assessing the credit profile of entities in EV sector, ICRA considers various parameters –industry growth prospects, demand cyclicality, competitive intensity, financing availability and regulatory norms and OEM’s ability towards compliance ICRA also considers the business parameters like scale and market position of the entity, its product portfolio, brand recall, technology and product development capabilities, sales and service network, geographical diversification, extent of localization, and strength of the vendor and ancillary network Financial metrics like profitability, leverage, coverage, capital expenditure plans and liquidity position are also assessed while evaluating the entity’s creditworthiness. This apart, factors like support of parent (if any), financial flexibility, debt servicing track record etc., are also assessed.

SRIKUMAR KRISHNAMURTHY

Senior Vice President & Co Group Head ICRA Limited

KEY HIGHLIGHTS

ICRA Limited evaluates EV companies' creditworthiness based on industry prospects, technology, finances, and compliance

ICRA assesses EV investment risks such as regulations, tech obsolescence, financing challenges, and supply chain stability, emphasizing stable raw material supply and financial flexibility

Emerging EV market trends drive shifts in India's finance, with ICRA noting increased investments in infrastructure, batteries, and collaborations, expecting sustained government support to drive future growth

What are the primary risks and challenges associated with investing in EV sector, and how does ICRA Limited evaluate these risks for investors?

EV sector presents long-term opportunities and growth, however investing in the sector presents itself a set of risks and challenges Some of the key expectations of stakeholders, include continued regulatory support from government, ability to achieve early break-even volumes given the inherent demand and market risks challenges associated with technological obsolescence (on vehicles and battery), battery prices, creation of conducive EV ecosystem (like charging infrastructure), managing supply chain

risks, standardization of components, skill development etc On the sourcing of raw material, the manufacturing operations in India are presently limited to the assembly of battery packs, and OEMs import battery cells While investments are under implementation, battery manufacturers consider factors like high capital costs, lack of visibility over stable raw material supply, technical capabilities etc Other key headwind is financing Significant share of India’s vehicle sales is dependent on financing and hence availability of adequate, affordable, and timely financing is a key expectation of the industry players. Uncertainty of residual value of vehicle and batteries absence of secondary market, and lack of historical data make it difficult for financiers to assess the risk profile for EV lending

g g , y technologies, recycling, software / connectivity solutions, etc Strategic tie-ups with major domestic / global counterparts to strengthen the capabilities in product and technology offerings, a differentiated distribution and supply chain models are also observed As the thrust on alternative fuels continue, a change in stance from select financial institutions is also observed in recent times. From creating flexible models towards meeting the changing customer needs to collaborating up with OEMs and charging infrastructure providers financiers are adapting themselves with innovative, tailored financial structures thus catering to the unique needs of the players Over next few

have recent government es and initiatives in India cted the investment and credit rios in the EV industry? What have you observed post these mentations?

cation in India was kickstarted by the ive policies and regulations of ment (both centre and state) Spurred by port in the form of subsidies (under the policy) coupled with other factors like ng customer awareness, and more launches, EV demand has seen a upturn in prospects in the last two Also, the policy measures around ed outlay under the FAME scheme, ble land and electricity procurement nes and subsidized electricity ment tariffs for EV charging stations aim actively promoting more EV charging In the recent interim budget 2024-25, g ernment’s proposal to create payment security mechanism and emphasis on increasing support to the manufacturing of charging infrastructure is a step in the right direction driving faster adoption of e-buses for public transport networks

Fueled by the healthy subsidies and other supportive factors, electric two-wheeler (e2w) segment currently accounts for 85-90% of total EV sales (excluding e-rickshaw). However, with reduction in subsidy benefits (under FAME II) for e2ws from June 2023 the pace of adoption slowed down to an extent. Stakeholders expect a longer and sustained period of support to drive investments

should investors be focusing on?

EV penetration remains low in India, with a share of 4 5% of total vehicle sales in FY2024

Nevertheless, the electrification of vehicles in India is expected to gather momentum supported by continued government support, favourable total cost of ownership and growing awareness about environmental concerns As EV adoption is likely to gather more pace in the next few years, investment will continue in technology, battery and overall EV ecosystem However timely fund raise to support the capital structure/competitiveness and OEM’s ability to ramp up volume and achieve faster break-even will be key monitorables Among the product segments, buses, three wheelers and two wheelers shall witness faster adoption while commercial vehicles and passenger vehicles are expected to catch up gradually That said, in PV segment, even as hybrids are viewed as intermediate step towards acceptance of EVs, mitigating range anxiety and offering superior mileage, EV penetration is likely to improve at a healthy pace, aided by enhanced customer acceptance.

CONVERSATION

DRIVING INNOVATION AND SUSTAINABILITY: EV2 VENTURES' VISION FOR ELECTRIC MOBILITY

What inspired the founding of EV2 Ventures, and could you share your journey into the electric mobility sector? How does this vision guide your approach to investments and partnerships in this space?

With investing experience of over 18 years across Venture and Private Equity, along with handling major transactions such as Silvercar, Oscar Health, ChowNow, SurfAir, Just Inc, Hopscotch, 99co, Innovative B2B Logistics across diverse sectors in various geographies such as Singapore, Indonesia, Thailand, Indiaand the USA, I developed a deep understanding of various markets and sectors This global exposure gives an immense perspective of the growing concerns of inefficiencies in transportation and logistics, along with a huge potential white space across the Electric Vehicle industry

Logistics, Supply Chain and Fulfillment, being the backbone of the ever-growing digital commerce industry it was evident that there is a need to shift towards efficient sustainable transportation solutions In 2018, India ranked 44th in the Logistics Performance Index, a cause for concern given its substantial GDP, which stood at 7th rank globally Recognizing the strategic importance of the logistics sector, the opportunity to address these challenges became clear Over the past four years, India has made commendable progress, improving its ranking by six positions to reach 38th Rank in the Logistics Performance Index With sustained attention to logistics and ongoing infrastructural developments, we anticipate witnessing similar advancements in the coming decade In addition, the recognition of the EV sector's growth potential, at a remarkable 66% CAGR, along with the country's surge in growth and government's commitment to the EV ecosystem, makes it one of the most attractive sectors to focus on Culmination of the above led to the decision to shift into the electric mobility sector particularly in high-GDP regions which contribute to significant carbon emissions

KARAN MITTAL

Partner

EV2 Ventures

KEY HIGHLIGHTS

EV2 Ventures' entry into electric mobility stemmed from global market insights, recognizing the imperative for sustainable transportation solutions in key economic regions

Through a comprehensive approach, the firm identifies emerging trends in electric mobility, leveraging industry analysis, technology innovations, government policies, and global collaborations to inform proactive investment strategies

EV2 Ventures prioritizes sustainability in investment decisions, balancing profitability with environmental and social impact considerations, thereby shaping a more eco-conscious and economically viable electric mobility sector

Ev2 Ventures aims to capitalize on this growth by providing early-stage capital to innovative solutions in various aspects of the mobility sector, including EV Ecosystem, Logistics & Transportation, Agri Supply Chain, Warehousing Tech, Micro mobility, Aftermarkets and Financing The overarching idea is to make India's transportation more efficient and sustainable, with the integration of technology We actively engage in partnerships, knowledge management, while simultaneously raising awareness within the ecosystem From participating in pre-seed accelerators to contributing as a jury member at mobility events, the fund is deeply involved in fostering positive change in the electric mobility landscape One of the key factors that advantages the companies we invest in is the interplay of our portfolio ecosystem where the founders are interconnected to build synergies and gain market insights from the entire mobility value chain

How does EV2 Ventures identify and capitalize on emerging trends in the electric mobility space? What key indicators do you focus on when predicting the next big shift in this sector?

We employ a multifaceted approach towards identifying emerging trends, keeping a close watch on various industry trends, government initiatives and incentives serves as a crucial leading indicator, helping us anticipate shifts in market dynamics. Our analysis extends to intellectual property, where we closely examine patents and innovations to identify emerging technologies Additionally, we foster international collaboration, speaking with counterparts worldwide and observing challenges faced globally in the electric mobility sector which also helps us stay abreast of technological advancements, particularly in

battery technology and charging infrastructure as well as market adoption rates and consumer preferences Assessing supply chain dynamics, tracking investment trends, considering global economic factors, and understanding the role of environmental awareness all contribute to a comprehensive analysis

Moreover, understanding the ecosystem's shortfalls is integral to our strategy We direct our attention to areas that demand further innovation, including battery efficiency, vehicle design, upgraded charging infrastructure and component upgrades By doing so, we not only contribute to the advancement of technology within the electric mobility space but also ensure that our portfolio remains resilient and adaptable to the evolving needs of the market We are not just observers of trends; we actively shape and contribute to the transformative journey of the electric mobility sector

In what ways does EV2 Ventures integrate environmental and social impact considerations into its investment decisions? How do you balance the pursuit of profitability with sustainable and responsible investing in the electric mobility sector?

As a mobility-focused climate venture capital firm, sustainability is not merely a consideration but the very core of our evaluation criteria. Demonstrating the synergy between profitability and a commitment to the environment, our portfolio proudly supports 200 000 blue-collar jobs has facilitated 15 million deliveries, contributed to a remarkable saving of 1 billion kilometers and have saved over 0 5 million tonnes of CO2 emissions on a yearly basis

Our commitment to environmental and social responsibility is woven into our investment decisions through rigorous ESG analysis Aligned with SDGs 7, 8, 9, 12, and 13, we prioritize investments in companies driving clean energy solutions, promoting fair labor practices, fostering innovation, advocating responsible consumption and production, and contributing to climate action It's important to note that our dedication extends beyond these SDGs, ensuring a comprehensive approach where our pursuit of profitability goes hand in hand with sustainable and responsible investing in the dynamic electric mobility sector Micro-mobility and Ride-sharing initiatives extend beyond convenience, providing efficient transportation, employment opportunities and market access for those underserved by traditional transportation whereas in Electric Vehicle (EV) Ecosystem, each advancement inherently aligns with the pursuit of cleaner energy, actively addressing CO2 emissions

With regard to the aspect of profitability, The resilience and sustained growth of our portfolio during economic downturns underscore the viability of integrating sustainability into business strategies Our investments not only have shown immense growth over the last few years but have also aligned with the values of responsible and ethical business practices This success serves as a testament to the notion that companies embracing sustainable and responsible principles can thrive economically while making meaningful contributions to a more environmentally and socially conscious world.

Ventures supports its portfolio startups in overcoming scaling challenges, particularly in the context of the unique demands and opportunities of the electric mobility market?

Launching an early-stage startup in the dynamic mobility sector poses considerable challenges high R&D costs, regulatory uncertainties, and intense competition. Beyond funding, our commitment is multi-faceted. We offer strategic mentorship, tapping into our team's industry expertise Networking opportunities that provide crucial connections, while assisting the founders with market insights and competitive intelligence We also assist in team building, due diligence, and access to vital resources

Our investment thesis revolves around key pillars: Positive unit economics, ensuring financial viability; Transparent practices, fostering trust and integrity; Company-friendly approach; Lasting growth, focusing on sustainable and long-term success; and Sustainability impact We've strategically covered the entire Electric Vehicle (EV) supply chain, spanning from components to Original Equipment Manufacturers (OEMs) to fleet operators This deliberate approach also allows us to facilitate a seamless exchange of knowledge and expertise within our portfolio

Within this tight-knit circle, a ripple effect is created, where advancements and innovations in one aspect of the ecosystem have positive implications for others From addressing the intricacies of first mile supply chain through Enmovil to providing targeted support for commercial adoption among fleet operators through Alt Mobility & Eveez, our portfolio companies benefit from a shared pool of knowledge

This collaborative ethos is more than a philosophy; it's a practical approach that recognizes the interconnected nature of the electric mobility market By leveraging the collective strengths of our portfolio companies,

d support Whether it's untangling supply chain complexities or facilitating the adoption of innovative solutions, Ev2 Ventures is committed to nurturing an ecosystem where every advancement positively influences the broader landscape of electric mobility

What is EV2 Ventures' long-term vision for the electric mobility industry, and how do you plan to drive positive change and innovation in this sector in the coming years?

At Ev2 Ventures, our vision extends beyond the present to a future where groundbreaking technologies redefine the landscape of mobility in India Looking ahead, our long-term plan is anchored in raising additional funds, fortifying our investment thesis, and broadening our focus to include Battery Tech & Energy Storage, Advanced Logistics and Space Tech as focus sectors while targeting close to 1% reduction in India’s CO2 emission (Around 10 million MT under the ambitious scenario of 2 Bn MT emission in 2030) by the next five-six years over the first 2 Funds However, the targeted impact will be much larger with future Funds with a larger capital allocation in the cleantech sector

CONVERSATION

EMPOWERING ELECTRIC MOBILITY: PERUSE'S IOT-DRIVEN FINANCING REVOLUTION

MAYANK PREMI

Founder PerUse

KEY HIGHLIGHTS

PerUse pioneers IoT-driven lending solutions, leveraging real-time vehicle data to mitigate risks and offer affordable loans, catalyzing the EV market

PerUse empowers fleet electrification, monitoring over 4400 vehicles with plans to expand to 10,000, while facilitating retail sales and financing for commercial EVs

PerUse harnesses rich API data to understand the commercial vehicle market, guiding strategic investment decisions and shaping the future of EV financing.

PerUse is known for transforming the lending and commercial vehicle industries with innovative technology. Can you elaborate on how PerUse is using IoT to mitigate lenders' risks and bring more affordable loans to the EV market?

PerUse is bringing a new paradigm to automotive lending and commercial vehicle sectors, particularly to EVs, through its innovative utilization of Internet of Things (IoT) technology The company's primary objective is to mitigate risks for lenders while concurrently enhancing the affordability of loans

At the core of PerUse tech lies the use of IoT devices embedded in EVs, continually collecting real-time data on critical parameters such as vehicle health, usage patterns, and driving behavior. This rich dataset serves as the basis for predictive analytics and machine learning algorithms, enabling PerUse to anticipate potential default risks before they manifest. By furnishing lenders with proactive insights, PerUse empowers them to effectively manage and mitigate risks, fortifying the overall risk management framework

Expanding beyond conventional risk assessment, PerUse leverages IoT data to establish precise valuations for financed assets, specifically EVs The ongoing monitoring of EV performance enables the company to furnish accurate information about the current and future value of these assets This not only assists lenders in making well-informed decisions about loan terms and conditions but also contributes to a more sustainable and economically viable lending model

In a bid to enhance affordability and accessibility, PerUse is enabling its partner lenders to offer a variable EMI structure linked to the kilometers driven in a month This innovative approach aligns the borrower's repayment capacity with the actual usage of the EV Drivers who utilize their vehicles more can afford a higher EMI, creating a fair and flexible financing model that encourages a broader range of borrowers to consider EV ownership

PerUse actively collaborates with lenders to seamlessly integrate these IoT-driven insights into their lending processes The ultimate goal is to address the perceived risks associated with EV financing, encouraging lenders to provide more favourable and competitive loan terms Through this comprehensive strategy, PerUse is not merely collecting data but strategically empowering lenders with actionable insights, reducing risks, and fostering the broader adoption of electric vehicles by making loans more affordable and accessible.

With PerUse tracking over 4400 vehicles and aiding in fleet expansion, how does the platform support the electrification of captive fleets? Additionally, how does it facilitate retail sales and financing for commercial electric vehicles?

With PerUse's rich APIs tracking vehicle sales across India, what insights have you gained about the commercial vehicle market, particularly electric vehicles, and how do these insights guide investment and business decisions?

Currently, PerUse actively monitors a fleet of slightly over 4400 vehicles, specifically focusing on 3-wheel electric vehicles (3W EVs) utilized in both cargo and passenger applications

Anticipating a substantial growth trajectory, we project this number to surge to approximately 10,000 vehicles within the next 2-3 quarters

Central to our operations is the commitment to facilitating enhanced loan products for prospective EV buyers

In line with this objective, PerUse is working with large captive distribution networks operating in the mid-mile and last-mile sectors This involves a meticulous analysis of their daily distribution data, routes, and cargo loads to formulate a tailored electrification plan and identify the optimal product fitment for their operational needs

On the retail front, PerUse is actively engaged in two key initiatives Firstly, through our consumer-facing platform, EVDhandha, we are dedicated to educating potential customers on the transition from drivers to vehicle owners The platform serves as an informational hub, offering insights into various opportunities available in the market and maintaining an updated inventory of available vehicles with their critical specifications

Secondly, we are spearheading the promotion of Driver Cum Owner (DCO) models to fleet aggregators, facilitating a more capital-efficient approach for their expansion. This strategic move not only promotes cost-effective capital expenditures for aggregators but also supports the broader objective of scaling up their operations

At the core of our operations lies a comprehensive data-driven methodology that allows us to delve deeply into various facets of the commercial vehicle landscape This includes a nuanced understanding of realworld vehicle performance, regional disparities, fleet utilization patterns, and borrower repayment behavior From a lender's perspective, they aid in informed decisionmaking concerning original equipment manufacturer (OEM) selection, optimal vehicle form factors and models, ensuring a judicious portfolio that aligns with market demands and dynamics. Simultaneously, for OEMs and dealerships, our insights serve as a guiding compass for market entry strategies, precise positioning within the competitive landscape, and potentially influencing research and development initiatives.

Beyond interpreting data, we are collaborating with OEMs' IoT teams and their service providers This collaborative effort is geared towards refining the accuracy of telematics, ensuring that the insights derived are not just comprehensive but also finely tuned to meet the specific needs of external stakeholders

Looking ahead, what are PerUse's long-term goals for integrating technology in the EV financing space, and how do you envision your role in shaping the future of EV investments and financing?

PerUse sees its platform becoming the de-facto standard for all commercial vehicle lending even beyond electric vehicles, especially, in the light of AIS 140 implementation in the country

We envision a future where our integration of Internet of Things (IoT) technology extends even deeper into the intricacies of EVs This includes refining our ability to predict vehicle performance, maintenance needs, and resale values with unparalleled accuracy

NAVIGATING ELECTRIC HORIZONS: SBI CAPITAL'S JOURNEY AND VISION

ARNAB CHOUDHURY

Executive Vice President & Group Head SBI Capital Markets

KEY HIGHLIGHTS

With extensive experience across premier financial institutions, including State Bank of India and Standard Chartered Bank, I've developed a versatile skill set adaptable to diverse markets

Recognizing India's proactive approach to shaping sustainable growth, especially in electric mobility, SBI Capital Markets actively engages with stakeholders and leverages governmental incentives to facilitate seamless EV adoption

Through sustainable-focused collaborations, SBI Capital Markets navigates the evolving financial landscape by providing tailored solutions and fostering partnerships with policymakers, startups, established players, and investors alike

Can you share your journey in the finance sector and in your role, how do you navigate the unique market uncertainties specific to the electric mobility sector while maintaining financial stability?

It has been a journey of more than 25 years The journey started at State Bank of India, moved through to Standard Chartered Bank, in Middle East with a brief stint in between with one of the biggest corporate houses The culmination of the journey has been the current role in SBI Capital Markets Ltd (SBICAPS), the premier Investment Bank of India

Though primarily restricted to Financial Markets and Investment Banking, this journey across a few premier organizations, across different geographies with different client base has helped me develop my skill set and more importantly widen my horizon

I recollect that during my days in the Middle East with one of the European Banks, serious discussions happened internally as well as with external stakeholders on sustainable energy resources and financing. Even back then the h t

g l

It is this seriousness and sincerity that I am starting to see in India as well India has its unique challenges But there is a complete buy in for Sustainable Growth across the entire corporate and policy spectrum

How do you think current and future government policies and regulations in India will shape the investment landscape for electric mobility, and how is SBI Capital Markets positioning itself in this context?

I must say the Government has been very proactive and cognizant of shaping and implementing the required regulations to drive in progressive and sustainable growth especially in the field of electric mobility Governmental authorities are providing incentives to increase the number of EV charging stations in India at both the central and state levels to attract investments in charging infrastructure Under the FAME II, it has sanctioned the establishment of 2877 EV charging stations in 68 cities and 1576 EV charging stations across 9 expressways and

The government has introduced both demand and supply side incentives which are both financial and operational to enhance both manufacture and sale of EVs Cost of manufacturing of EVs is still high resulting in higher cost of EVs and more incentives are required to be introduced to give EVs a competitive edge Subsidies may be provided to manufacturers of EVs and EV components to all stakeholders especially during the nascent stages of development of the EV sector and to push more mainstream adoption

SBICAPS has been in constant touch with all stake holders, be it the relevant Government Departments, New entrants, Established Players, State Entities and most importantly, investors who are keen to collaborate in this space We have set up and strengthened our ESG desk to help many of the market participants achieve their ESG targets

Could you elaborate on how SBI Capital Markets is cultivating partnerships to drive success, especially in the burgeoning electric mobility industry?

As mentioned above, SBICAPS has tried to keep the Sustainable agenda in the forefront in all its business decisions. We understand that it is an evolving space and there is a need to collaborate, nurture and accentuate the underlying challenges and resolve them to everyone’s satisfaction.

At Policy Making levels, we are trying to give our inputs after detailed understanding of issues faced by different stake holders At implementation levels, there have been discussions happening to find appropriate funding solutions In this evolving space, off the shelf solutions don’t necessarily work and we have worked with different clients to find the most effective and efficient solutions for them

We also try to understand the investment philosophy of many Investors be it domestic or Multinational firms, to see how that fits into the Indian regulatory environment We have worked with many Institutional Clients to help them draft their Green Framework

We are also actively involved with Startups, established players as well as AIFs and PE funds to align their interests and address their funding requirements. Further, our expertise in credit structuring allows us to offer innovative solutions to each stakeholder’s satisfaction.

In your perspective, what innovative financial instruments or models could be pivotal in accelerating the growth of the electric mobility sector in India?

Banks, NBFCs, and financial institutions can provide critical financial support to consumers, startups, and established players through loans, guarantees, and innovative financing models. Fin tech companies have collaborated with banks to offer innovative lending schemes including 12 to 24 months of purchase lower EMIs and attractive interest rates.

In my opinion, governmentfinancial collaboration for c startups, and established players is create conducive financial ecosyste adoption, including consumer credi startup incubation funds, and r mechanisms

NITI Aayog with World Bank is se USD 300mn first-loss risk-sharing i to act as a hedging and gu mechanism that banks and NBFCs c in the event of payment delays on EV program is expected to bring financing costs for EVs by 10–12 perc

How do you perceive the evolving role of technology in finance, particularly in the context of its impact on capital markets and the electric mobility sector?

The challenge is that the OEM players are not able to adapt themselves to the changing policies of the government So, once you are consistent and just focus on implementation with subsidy or without subsidy, doesn't matter

India has recently discovered a significant reserve of lithium in the states of Rajasthan and Jammu & Kashmir; the discovery is observed as a game changer for electric vehicle production in the country As per reports, these reserves are expected to fulfill almost 80% of the country’s lithium requirements

New fin tech-based NBFCs have started enabling greater EV penetration in tier 2 and tier 3 cities. However, NBFCs have been facing a liquidity crunch since 2017 that has been worsened by the effects of COVID-19. This may

translate to EV-first NBFCs struggling to access low-cost finance from banks

Financing windows for small OEMs and smallscale component suppliers or vendors to the OEMs, e g , a partial credit guarantee scheme or carving out limits within existing programs in this segment to allow for increased finance flows may help.

As the electric mobility sector grows, how does SBI Capital Markets balance the dual objectives of promoting sustainable environmental practices while ensuring profitability for its stakeholders?

Established players with good track records generally face less difficulty in securing loans However, the overall growth and stability of the Indian EV sector will also influence banks' risk appetite and willingness to lend In the EV ecosystem, the startups in Hardware segment phases face more hardship than other segments The Charging station segment faces an issue as the need for charging points may decrease in the near to medium term as the technological advancement in Battery is expected to increase the scale up to 8 hours per cycle, thus reducing the need of charging stations

Our role in SBICAPS has been to identify the opportunities, find the stake holders and align their interests to make it a commercially viable option without compromising on the Sustainability pledge

Private capital is steadily flowing into India’s EV ecosystem, with startups bagging deals worth $1 2 billion between January-August 2023, according to Tracxn However, because the sector is capex-intensive, many hardware companies are even unable to raise funds in the early stages We haven't seen large kind of hardware startups getting VC funding Hardware startup is largely in between angels and private equity the mid arena, the whole array, is completely missing.

has been a slew of recent investments building out an enabling ecosystem to mass adoption. This includes localised facturing and battery assembly, battery gement systems (BMS), software and matics, and components

ee this to be the “Sunrise” sector which will nate the financial landscape in the coming We are trying to be nimble, keeping pace the changing regulatory environment, changing technologies and fast updating cial parameters set by the investors We e we are in a very good space where our ects, our expertise and our structuring bilities make us a very effective Financial mediary for all stake holders in this EMobility space

CONVERSATION

ACCELERATING ELECTRIC MOBILITY:

UNVEILING SIDBI'S FINANCIAL ROADMAP

FOR A SUSTAINABLE

FUTURE

How does SIDBI perceive the role of finance in accelerating the adoption of electric mobility in India?

The path to electric vehicle adoption from 2015 to now has been encouraging, especially in the last two years More than 1 million EVs were sold in the last one year However, if we are to reach the government’s target of 30% of EVs by 2030,targeted intervention will be required.

For instance, among commercial vehicles, the adoption of electric vehicles for last mile deliveries and connectivity is happening through many new age companies. For these new companies to scale up, we have to ensure they have affordable financing

It is crucial to support entities working on the downstream side of electric vehicle adoption, be it fleet operators, leasing companies, charging stations, battery swapping and leasing So, financiers will play a significant role in the adoption

SIDBI has held consultations across India and understood the dynamics of EV financing Various EV initiatives are being developed in collaboration with national stakeholders, MDBs and think tanks I believe this is the right time to ramp up the financing for the electric vehicle ecosystem

Having said that, there are a few key areas where the finance industry can play a key role:

Timely and solid support to MSMEs and start-ups that are or will soon be playing a vital role in the electrical mobility value chain The most critical of these would be those developing charging infrastructure, which is the key driver of adoption

Innovative risk management techniques to help electrical vehicle pioneers mitigate risks typically associated with new technologies and evolving markets (SIDBI has developed some new-age risk sharing

RAMANN S

Chairman & Managing Director Small Industries Development Bank of India (SIDBI)

KEY HIGHLIGHTS

SIDBI pioneers tailored financial solutions to bolster electric mobility, addressing critical gaps in affordability and accessibility for ecosystem players

Innovative risk management strategies mitigate uncertainties associated with evolving EV technology, ensuring investor confidence and project viability

Strategic initiatives, such as the 50KEV4ECO scheme and collaborations with global institutions, propel electric mobility forward, driving inclusive growth and environmental sustainability

models and financial products to address this very issue)

Financial incentives to encourage adoption, which can include de-risking measures (DRMs) or lower interest rates to encourage adoption among consumers.

What are the key challenges SIDBI foresees in financing electric mobility projects, and how does it plan to address them?

The challenges in financing electric mobility projects are similar to those in any sunrise industry with nascent technology and a developing market.

The first and the most critical challenge is the availability of finance. Currently around 80% of the EV market financing is through dedicated NBFCs. While these lenders have a comprehensive knowledge of the sector, they are not among the top-rated NBFCs This means their own cost of funds is high, which gets passed on to the industry

We at SIDBI lend to these unrated NBFCs and help them improve their credibility and availability of funds at reasonable costs. We also lend directly to ecosystem players such as fleet operators, charging companies aggregators etc through our various schemes

Technology Risk- The EV segment has seen rapid technological growth, that pose risks and uncertainties for investors and financiers To mitigate the product risk, we are empanelling OEMs and the certifications of products they offer are examined by our experts

Lack of data- Commercial banks hesitate to lend to EV projects because there is little

data on vehicle performance or a secondary market To mitigate this, we are developing an IT platform to collect vehicle performance data, EV portfolio performance data etc which will strengthen the under-writing skills of the financers The proposed IT-platform will digitize end-to-end operations, create a platform to bring EV stakeholders, data repositories on EVs and its loans, and a mechanism to realise the carbon credits from the usage of EVs

Environmental risk- Environmental concerns are another challenge and at SIDBI we have developed ESMS for EV based on Environmental and Social Impact Assessment performed These measures are imbibed in our financing process

High perceived risk and bankabilityBeneficiaries are unable to access finance due to high perceived risks associated with EVs To encourage financing by other lending institutions, reduce their perceived risks, we have launched the EV-Risk Sharing facility in collaboration with Shell Foundation. The facility will make project loans more bankable and safeguard the portfolio of lending institutions in the EV ecosystem.

How does SIDBI assess the investment potential of electric mobility startups and businesses, and what criteria does it consider?

SIDBI has a dedicated vertical on Greening the enterprise eco system We have experts dedicated to each vertical Some of the key pointers while assessing EV projects are as follows:

Sustainability of business models and potential for long-term success For example, borrower entities should have medium / long term business assurance contracts with a reputed agency or should have one year of dealing with reputed agency for the EV segment

Ability to capture market share: Examine tieups and partnerships with existing players of EV Ecosystem

Technical expertise: Our experts evaluate the uniqueness of the start-up’s offerings, such as advanced battery technology, software solutions etc

Most importantly we check for the firms’ regulatory compliance as per different standards in EV industry.

In your opinion, what are the most promising areas within the electric mobility sector that merit increased investment attention?

In our opinion, the following areas under the electric mobility sector appear to be most promising for investment -

Last mile connectivity focused: This is definitely one of the promising sectors and has seen traction lately The last mile deliveries and connectivity options for passengers have huge potential The policy push mandating the transition a Delhi aggregator policy, will d increase the adoption in a time manner

Battery Technology and Energy

Lots of start-ups are working on in solutions to develop the alternate chemistry, improve the efficiency battery components (cathode/ ano battery recycling Additionally business models are merging f vehicles and charging space to a the adoption

Electric Commercial Vehicles i buses and trucks: This sector is ye off as only government buses are el the FAME II subsidy. At least 90 commercial vehicles are yet t towards electric mobility.

Rural e-connectivity: Rural transport infrastructure and services play a pivotal role in enabling economic development, improving social well-being, and reducing inequalities Rural India holds immense potential as more than 50% of two-wheeler sales are attributed to rural regions Considering this, SIDBI supported a developmental pilot program by supporting women entrepreneurs in their electric mobility journey by providing subsidy equivalent to cost differential between ICE and Electric two-wheeler

Can you share insights into SIDBI's approach to MSMEs involved in EV manufacturing and related technologies?

Being a MSME focused Development Financial Institution, we always strive to promote and support MSMEs involved not only in EV manufacturing but also in the value chain of the entire EV ecosystem. Few insights into our approach are

We offer customized financial products to MSMEs and at better than market rates

We support collaboration and partnerships within the MSME ecosystem involved in EV manufacturing through our stakeholder consultations

We are s pporting capacit b ilding and

Looking ahead, what are SIDBI's strategic priorities and initiatives in terms of financing electric mobility projects and businesses in the coming years?

We are glad to share that EV mission which SIDBI has adopted under the guidance of NITI Aayog is creating a visible impact We are pleased to share few key initiatives taken for EV adoption:

Launch of 50KEV4ECO scheme and supported to several Fleet operators, charging companies, swapping companies & NBFCs under the scheme Till date supported assistance to 18000 electric vehicles

Launch of pilot Electric Vehicle- Risk Sharing facility (EV-RSF) of USD 6 million with the support of Shell Foundation for e2w and e-3w

E-auto in Ayodhya under EV scheme

Release of e-book on Unlocking e-Mobility* [https://www sidbi in/green-pathways-eseries php]

Pilot for ‘Greening Rural Mobility’ through women entrepreneurs in association with SEWA and NRDC.

Further, we are working with multilateral development banks like World Bank Asian Development Bank to enable the adoption by improving the access to financing as well as move the market towards sustainable financing options and also with other philanthropic organisations We are also working to enable the financing for transitioning of heavy-duty vehicles, including buses to electric mobility To get ahead of the curve in terms of adoption happening in the leading countries, we have to tailor-made the financing products as per requirement

IMPACT INVESTING IN INDIA’S ELECTRIC MOBILITY SECTOR

SHIKHAR GUPTA

Director, Energy and E-mobility expert PwC

Impact investing is a form of investing that aims to generate positive social and environmental outcomes, along with financial returns It is a growing trend in the global capital markets, as investors look to align their values with their portfolios and contribute to solving some of the world’s most pressing challenges According to the Global Impact Investing Network (GIIN), the size of the impact investing market currently stands at $1 164 trillion in assets under management (AUM) The impact investing market in India is also growing significantly

One of the sectors that has attracted significant interest from impact investors is electric mobility, and related infrastructure According to Tracxn, deals worth $1 2bn were announced in the EV sector between January and August 2023, surpassing the total funding announced in 2022 The sector witnessed a 60% growth in funding in Q3 2023 compared to Q3 2022, and the trend is expected to grow

While India’s EV growth story is phenomenal, the transition to electric mobility in India faces several structural challenges, such as high upfront costs, limited range, inadequate charging infrastructure, and lack of consumer awareness and financing options This keeps several investors cautious on the long-term viability of this technology On top of this, every year we are seeing several new start-ups emerging, and more shuttingdown, only to realize it is not easy to disrupt the auto market

According to NITI Ayog, cumulative investment in India’s electric vehicle (EV) transition could be as large as INR19.7 lakh crore ($US266 billion) between 2020 and 2030, highlighting the need for higher liquidity and lower cost of capital for EV assets and infrastructure. So far, commercial debt and equity financing have been dominant. There are a few concessional debt players such as ADB, KfW, World Bank, DFC etc, but for larger tickets. Some other notable investors include:

Blume ventures for instance, over the last 5+ years, have invested in 5 EV companies: Yulu, Euler Motors, BatterySmart, Electric, and Vecmocon

Private equity firm GEF Capital Partners said it has invested a total of more than ₹500 crore in e-mobility companies, Electra EV and Hero Motors Ltd

Macquarie is leading the development of a new blended finance platform, with the UN’s Green Climate Fund (GCF), to drive the adoption of electric vehicles (EVs) across India

So how can start-ups get investors’ confidence to scale further?

As per my conversations with established start-ups and investors, four things are crucial:

Entrepreneurs’ mindset: Similar to any other business, investors are looking for entrepreneurs who are in this game to solve a business/society problem, and have long-term commitment Several models like public charging still needs to be profitable, hence, patience would be the key

Sound business models: Investment is increasingly focused on credible companies with strong technology and a clear path to profitability, and there is growing interest in EV components, EV mobility services, and the entire EV ecosystem. Mobility as a service is also gaining interest given the recurring revenue model.

Data and transparency: Several VCs have expressed confidence in companies which can show data-backed performance, with focus on operations For instance, data that can show battery health, recharge cycles, utilization of fleet, consumers feedback, and several other business KPIs This enables investors to have more skin in the game

Partnerships: Given the cross-sector play, partnerships are crucial to scale business Hence, investors are always looking for businesses which have a strong partnership ecosystem

I moderated a panel discussion early January on the EV Financing and Investments, and I was thrilled to hear from some EV OEMs “investors are lining-up and there is a problem of plenty for start-ups which have proven business models and have a long-term vision” This is a stark change from 2020 where investors were cautious on the long-term demand for EVs

These examples show that impact investing in India’s electric mobility sector can generate positive returns, both financial and non-financial, for the investors and the society. However, there is still a lot of scope for further growth and improvement in the EV sector, which requires more support and collaboration from various stakeholders such as the government the industry, the consumers, and the impact investors.

DRIVING SUCCESS: UNRAVELING FINANCIAL MODELS IN INDIA'S E-MOBILITY REVOLUTION

In the dynamic landscape of India's e-mobility sector, the road to success is intricately tied to the financial models that underpin the operations of visionary companies This article unravels the diverse financial models employed by successful e-mobility ventures in India, delving into case studies that illuminate the effectiveness of these approaches

The Varied Tapestry of Financial Models

Successful e-mobility companies in India have embraced a spectrum of financial models, each contributing to the sector's evolution Among these, the subscription-based model has emerged as a frontrunner Companies like Zoomcar have pioneered this approach, allowing users to subscribe to electric vehicles (EVs) on a monthly basis This not only provides a consistent revenue stream for companies but also aligns with the growing trend of mobility-as-a-service, offering users the benefits of EV ownership without the burden of long-term commitments

The marketplace model has also found a niche in India's e-mobility landscape Platforms like Ola Electric have created marketplaces where EV owners can share their vehicles for short-term rentals This harnesses the power of the sharing economy, optimizing the utilization of existing EV fleets, and expanding accessibility to electric mobility

Fleet management is another key financial model driving success Companies like Ather Energy have adopted a comprehensive fleet management approach, providing end-to-end services to businesses looking to electrify their fleets This includes vehicle maintenance, charging infrastructure, and driver support, offering a seamless transition to electric mobility for businesses

Case Studies: A Glimpse Into Effective Implementation

Zoomcar's Subscription Triumph:

Zoomcar's subscription-based model has found success by catering to urban dwellers seeking sustainable and flexible mobility solutions By allowing users to subscribe to EVs on a monthly basis, Zoomcar has tapped into the growing demand for hassle-free and eco-friendly transportation options in urban centers

Ola Electric's Marketplace Magic:

Ola Electric's marketplace model has resonated with users looking for short-term electric two-wheeler rentals. By connecting EV owners with users seeking temporary access to electric mobility, Ola Electric maximizes the utilization of existing resources. This approach aligns with the ethos of the sharing economy, providing an accessible and affordable alternative for users.

Ather Energy's Fleet Management Excellence:

Ather Energy's integrated fleet management model has provided a holistic solution for businesses transitioning to electric mobility By offering not just high-performance electric scooters but also end-to-end fleet management services, Ather Energy has facilitated a seamless adoption process for businesses, contributing to the growth of electric fleets in the country

Key Insights: What Drives Success

The success of these financial models hinges on several critical factors Affordability remains a key consideration, with models that make electric mobility accessible to a broad spectrum of the population gaining traction Flexibility and convenience are also paramount, with successful models offering users a range of options, from short-term rentals to subscription plans and comprehensive fleet management services

Simplicity in user interfaces and transparent pricing structures further contributes to the success of these financial models As the e-mobility sector continues to gain momentum in India, financial models that strike the right balance between affordability, flexibility, and convenience are poised to drive success, contributing to the electrifying transformation of the country's transportation landscape

In conclusion, the financial models adopted by successful e-mobility companies in India are not just about facilitating transactions; they are keystones in shaping the future of transportation As these models continue to evolve and adapt, they will play a pivotal role in steering India towards a more sustainable, efficient, and electrified future on its roads.

ACCELERATING GROWTH: INDIA'S ELECTRIC MOBILITY SECTOR AND INVESTMENT LANDSCAPE

The EV Investment and Finance Show 2024, hosted as part of the South Asia Regional Energy Partnership (SAREP), shed light on the thriving global electric mobility sector Despite facing unforeseen challenges such as the COVID-19 pandemic, the sector has demonstrated remarkable resilience and growth

India, in particular, has emerged as a favoured destination for companies seeking cost-effective and regulation-friendly manufacturing hubs With the conclusion of FAME II, the Government of India (GoI) is now shifting its focus towards promoting e-buses and e-trucks in the upcoming FAME III scheme This renewed emphasis aims to provide economical and environmentally friendly public transportation solutions

The investment landscape in India's electric mobility sector is witnessing significant developments The 2023 Union Budget unveiled provisions to incentivize domestic manufacturing of lithium-ion batteries and auto parts Moreover, strong policy support aims to localize manufacturing and incentivize demand, with a particular focus on emerging technologies like battery swapping

Forecasts indicate a substantial growth trajectory for electric vehicle (EV) sales in India, with projections exceeding 23 million units by 2030 This surge is fueled by factors such as lower ownership costs, changing consumer behavior, rising fossil fuel prices, reducing battery costs, and robust government support

While the lending market for e-mobility in India is evolving, it is primarily driven by small Non-Banking Financial Companies (NBFCs) and Fintech lenders Traditional lenders are also evaluating the sector, albeit cautiously, limiting their lending to companies with strong balance sheets

As the EV market matures, investors can expect both strategic and financial exit opportunities, particularly in segments like electric twowheelers (E2W) and electric three-wheelers (E3W) Legacy players in electric four-wheelers (E4W) are likely to finance themselves, while some Original Equipment Manufacturers (OEMs) may raise finance at the corporate level for their EV subsidiaries.

The Indian e-mobility ecosystem presents a ripe opportunity for investors across various segments From raw material extraction to battery manufacturing and vehicle assembly, each segment offers unique investment prospects Despite challenges such as difficulty in identifying high-quality deals and inadequate infrastructure, the sector's growth potential remains compelling

To address challenges related to end-user financing gaps and inadequate infrastructure, concerted efforts are needed to customize vehicles and components to suit India's geographic and demographic needs Continued fiscal support from the government, especially for higher EV form factors like buses and trucks, is crucial to accelerating EV adoption

Looking ahead, significant investment will be required across the EV value chain to meet growing demand and address infrastructure challenges. The government's initiatives to incentivize domestic battery manufacturing and localize EV components are expected to drive down costs and spur EV adoption India's electric mobility sector is poised for accelerated growth, buoyed by supportive policies and increasing investor interest As the sector evolves, strategic investments in key segments will be pivotal in realizing India's vision of becoming a global leader in electric mobility

SAFEGUARDING INVESTMENTS: NAVIGATING RISK IN INDIA'S EMOBILITY LANDSCAPE

In the sprawling expanse of India's e-mobility industry, investors find themselves at the intersection of promising opportunities and unique challenges While the potential for transformative growth is undeniable, the intricacies of the Indian market introduce a set of distinctive risks that demand thoughtful consideration This column delves into the nuances of risk management in the Indian e-mobility sector, offering strategic insights for investors looking to navigate this dynamic landscape and safeguard their investments

Understanding Unique Risks in Indian E-Mobility Investments

Infrastructure Challenges:

Investors face a formidable challenge in India's diverse and geographically vast landscape, particularly concerning the deployment of a robust charging infrastructure The risk of delays, inadequacies, or uneven distribution of charging networks looms large, potentially impacting the viability of e-mobility investments Successfully managing this risk necessitates an in-depth understanding of the local nuances and an adaptive approach to infrastructure development

Regulatory Dynamics:

The regulatory environment in India is dynamic and subject to frequent changes Investors must contend with the risk of policy shifts, alterations in incentive structures, and evolving compliance requirements To navigate this intricate landscape, a vigilant and adaptive stance is essential Continuous monitoring of regulatory developments and proactive engagement with policymakers become integral components of an effective risk management strategy

Consumer Adoption and Preferences:

The success of e-mobility investments is intricately tied to the adoption patterns and preferences of the Indian consumer base. Predicting and aligning with the diverse needs and behaviors of this market poses a unique risk Investors need to conduct comprehensive market research, staying attuned to evolving consumer sentiments and adapting investment strategies to align with the dynamic nature of the Indian market

Technological Adaptation:

In a rapidly advancing technological landscape, the risk of investing in outdated or rapidly evolving technologies is inherent. Assessing the adaptability of e-mobility companies to technological advancements is crucial for long-term viability Technological due diligence, therefore, becomes a key aspect of risk management in India's e-mobility sector

Strategies for Risk Mitigation and Management

Collaborative Infrastructure Development:

Infrastructure challenges can be addressed through collaborative models of development. Investors can explore partnerships with local governments, businesses, and other investors to share the burden of infrastructure investments Such collaborations enhance the scalability and reliability of charging networks, mitigating the risks associated with infrastructure challenges

Government Engagement and Advocacy:

Given the significance of regulatory dynamics, active engagement with government bodies is crucial. Investors should proactively contribute insights and feedback to policymakers participating in industry advocacy efforts. Building strong relationships with relevant stakeholders positions investors to anticipate and adapt to regulatory changes effectively

Market Research and Localization:

Understanding the nuanced dynamics of consumer adoption demands meticulous market research. Investors should invest in localized studies that capture the unique characteristics of the Indian market. Adapting investment strategies based on comprehensive insights into consumer behavior enhances the likelihood of successful market penetration, reducing risks associated with misaligned investments.

Continuous Technological Due Diligence:

To effectively manage technological adaptation risks, investors should conduct continuous technological due diligence This involves regularly assessing the research and development capabilities of e-mobility companies, their commitment to innovation, and their potential partnerships with technology leaders. Such due diligence ensures that investments remain aligned with the evolving technological landscape.

Conclusion: Navigating the Path to Sustainable Investments

As investors tread the path of e-mobility in India, safeguarding their investments requires more than financial acumen; it demands a strategic and adaptive approach. The confluence of infrastructure challenges, regulatory dynamics, consumer behaviours, and technological shifts necessitates a holistic risk management strategy By embracing collaboration, engaging with regulators, conducting localized market research, and maintaining continuous technological due diligence, investors can navigate the multifaceted risks of India's e-mobility landscape

In conclusion, as investors embark on the journey to capitalize on India's e-mobility potential, the commitment to safeguarding investments through prudent risk management practices becomes the compass guiding them through the dynamic and promising landscape of the Indian e-mobility sector

EMPOWERING E-MOBILITY: NAVIGATING THE LANDSCAPE OF DEBT FINANCING IN E-MOBILITY

In the dynamic realm of e-mobility, where innovation and sustainability converge, the role of financing becomes paramount While equity investments often take the spotlight, debt financing quietly plays a significant role in fueling the growth of e-mobility startups and established companies alike This article delves into the risks and rewards associated with debt financing in the e-mobility sector, accompanied by insightful case studies of companies that have successfully leveraged debt to propel their growth.

The Role of Debt Financing in E-Mobility Ventures

1. Tesla's Strategic Debt Utilization:

Tesla, a trailblazer in the e-mobility sector, strategically utilized debt financing to fund its ambitious projects Notable instances include issuing convertible bonds to raise capital for the Gigafactory and expanding manufacturing capabilities Tesla's success lies not just in the utilization of debt but in coupling it with robust growth strategies and market demand for electric vehicles

The Role of Debt Financing in E-Mobility Ventures

Debt financing serves as a powerful tool for e-mobility ventures looking to scale their operations, invest in research and development, or expand their fleets and infrastructure Unlike equity financing, which involves giving up ownership stakes, debt allows companies to secure funds while maintaining control This is particularly crucial in an industry like emobility, where capital-intensive projects and infrastructure development are common

Startups in the e-mobility space often face high initial costs associated with vehicle manufacturing, charging infrastructure, and technology development Debt financing provides a structured way to address these financial needs, offering a reliable source of capital that can be repaid over time For established companies, debt can be instrumental in funding expansion into new markets or upgrading existing technologies

While debt financing opens avenues for growth, it comes with inherent risks The primary risk lies in the obligation to repay borrowed funds, regardless of the company's financial performance In an industry characterized by rapid technological advancements and evolving market dynamics, servicing debt can pose challenges, especially for startups facing uncertainties in the early stages of development

Interest rates and debt covenants are additional risk factors Fluctuations in interest rates can impact the overall cost of borrowing, while debt covenants may impose restrictions on the company's operations Striking the right balance between debt levels and operational capacity is essential to mitigate these risks effectively

2. BYD's Global Expansion with Debt Support:

BYD, a leading Chinese electric vehicle manufacturer, leveraged debt financing to support its global expansion The company raised substantial debt capital to invest in research and development, battery technologies, and the expansion of its electric vehicle portfolio BYD's adept management of debt played a pivotal role in establishing its presence in international markets

3. ChargePoint's Infrastructure Investment:

ChargePoint, a key player in electric vehicle charging infrastructure, utilized debt financing to expand its charging network The company secured debt capital to invest in the development and deployment of charging stations, addressing the critical need for robust infrastructure to support the growing adoption of electric vehicles

Rewards: Striking the Balance for Sustainable Growth

Successful cases of debt-financed growth in the e-mobility sector highlight the rewards of a well-calibrated approach Debt, when managed prudently, can provide the financial flexibility needed for strategic investments, technological advancements, and infrastructure development Companies that navigate the risks associated with debt financing effectively position themselves for sustained growth and industry leadership

In conclusion, as the e-mobility sector charges ahead, debt financing emerges as a valuable ally in the pursuit of sustainable and scalable operations The risks inherent in debt are counterbalanced by the rewards of accessing capital for critical projects Companies that judiciously leverage debt, learning from successful case studies, stand poised to empower e-mobility and drive the transition towards a cleaner, electrified future

Risks

Congratulations to all the

STATELEADERSHIP

MAHARASHTRA AWARDS

EV Manufacturer in the State(E-Bicycle) EMotorad

EVSE Manufacturer in the State (EV Charger)

Chhabi Electricals Pvt Ltd

EV Battery Manufacturer in the State

Neuron Energy Pvt Ltd

EV Component Manufacturer in the state (Thermal Management)

PV Clean Mobility Technologies Private Limited

Best After-Sales Service (ECycle)

EMX by EMotorad

Innovative Last-Mile Delivery Solution

Roadlark Cargo by Nexzu Mobility

Innovative EV Battery Product/Service

NE51200EL by Neuron Energy Pvt Ltd

Best Electric Vehicle Model (2W)

E-Luna Kinetic Green Energy & Power Solutions Ltd

Outstanding Charging Solution for EVs

Tirex Chargers

Technology Innovation in Electric Mobility (Cargo)

Nexzu Mobility

Innovative eMobility Team of the Year

Team Tirex Chargers

EMERGING LEADER IN EMOBILITY - TECHNOLOGY

Atulya Mittal Co-Founder, Nexzu Mobility

EMERGING LEADER IN EMOBILITY - BUSINESS POSITIONING

Pratik Kamdar

CEO & Co-Founder, Neuron Energy Pvt. Ltd.

EMOBILITY VISIONARY LEADERSHIP AWARD

Ashish Deshpande

Group CTO, Belrise Technologies

CURRENT AFFAIRS

DRIVING CHANGE: ANALYZING FOREIGN INVESTMENT TRENDS IN INDIA’S E-MOBILITY SECTOR

The winds of change are sweeping through India’s e-mobility sector, and at the heart of this transformative journey lies the influx of foreign direct investment (FDI) In this article, we explore the dynamic landscape of foreign investment in India's e-mobility market, examining trends, the policy environment, and providing insightful case studies that shed light on the sector's evolution

Foreign Direct Investment Trends: Paving the Way for Growth

India's e-mobility sector has witnessed a surge in foreign direct investment, reflecting global interest in the country's efforts towards sustainable and electric transportation. Notable trends include strategic investments from multinational corporations and venture capital funds. Major automakers, both traditional and electric, are establishing a formidable presence in India, recognizing its potential as a key market for electric vehicles (EVs)

The trend is not limited to vehicle manufacturers; charging infrastructure providers, battery technology companies, and mobility service platforms are also attracting substantial foreign investments These investments go beyond financial contributions, often involving technology transfer and collaborative research and development initiatives

Policy Environment: A Catalyst for Foreign Investment

A conducive policy environment has played a pivotal role in attracting foreign investment to India's e-mobility sector. The government's proactive stance towards promoting electric mobility, backed by policies such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, provides a regulatory framework that encourages investments.

The Goods and Services Tax (GST) reduction on EVs and charging infrastructure, coupled with incentives for manufacturers and consumers, creates a favorable economic environment The 'Make in India' initiative further incentivizes foreign companies to establish manufacturing facilities within the country, driving job creation and skill development Additionally, the National Mission on Transformative Mobility and Battery Storage aims to boost local manufacturing and research in the electric mobility and battery technology sectors These policies collectively contribute to a holistic ecosystem that attracts foreign investors seeking a stable and growth-oriented market

Case Studies: Exemplifying Foreign Investment Success

1. Tesla's Entry into the Indian Market:

Tesla's announcement to set up a Gigafactory in India marked a significant milestone The American electric car giant's decision to invest in manufacturing facilities signals confidence in India's potential as a manufacturing hub Tesla's entry also aligns with India's focus on increasing EV adoption and reducing carbon emissions

2. SoftBank's Strategic Investments:

SoftBank, a global technology conglomerate, has made strategic investments in Indian e-mobility startups Companies like Ola Electric and Ola's electric scooter manufacturing unit have received significant funding from SoftBank These investments highlight the importance of global partnerships in fostering innovation and driving the growth of the e-mobility ecosystem

3. Hyundai's Commitment to Local Production:

Hyundai's commitment to invest in local manufacturing of electric vehicles demonstrates the industry's recognition of India as a strategic market By establishing a dedicated electric vehicle production unit, Hyundai not only contributes to the 'Make in India' initiative but also aligns with the country's sustainability goals

Looking Ahead: The Roadmap for Foreign Investment in E-Mobility

As India's e-mobility sector continues to evolve, foreign direct investment is expected to play an increasingly crucial role Continued policy support, innovative collaborations, and a focus on sustainable practices will likely attract more foreign investors The sector's growth is not only an economic opportunity but also a contribution to India's broader goals of reducing carbon emissions and fostering sustainable urban mobility

In conclusion, the analysis of foreign investment trends in India’s emobility sector underscores the sector's global significance. As foreign investors recognize the potential for growth and collaboration in the Indian market their contributions become integral to steering the nation towards a cleaner, more efficient, and sustainable future in transportation. The journey has just begun, and the road ahead promises a transformative landscape where foreign investment acts as a catalyst for change

EXCELLENCE

Innovative EV Retail Financing Ecofy

Strategic Investment: EV Charging Network Development

MG Motor India Pvt. Ltd.

Debt Financial Assistance Public Transport Fleet

TATA Capital Limited

Supporting Green Mobility

Epsilon Advanced Materials Pvt. Ltd.

Digital Innovation in EV Retail Financing

Risewise Capital Pvt Ltd

Strategic Investment: EV Charging Solution (European Market)

Zhejiang Benyi New Energy Co Ltd

Comprehensive Retail Financing

TATA Capital Limited

Supporting EV Startup Innovations

MG Motor India Pvt. Ltd.

Green Financing Initiative for EV Fleet

Alt Mobility

EV Leasing Solution of the Year (Passenger Fleet)

Tata Capital Limited

INVESTMENT OUTLOOK

ENERGIZING TOMORROW PROFILES AND STRATEGIES OF KEY INVESTORS DRIVING INDIA'S E-MOBILITY REVOLUTION

India's e-mobility sector is undergoing a revolutionary transformation, and behind the scenes, major investors are playing a pivotal role in shaping the future of electric transportation in the country In this investor's spotlight, we delve into the profiles of key players – venture capitalists, angel investors, and sovereign funds – who are placing significant bets on India's e-mobility landscape

Venture Capitalists: Fueling the E-Mobility Drive

Venture capitalists (VCs) are at the forefront of driving innovation and growth in India's e-mobility sector One prominent investor is Sequoia Capital India, known for its strategic investments in tech-driven companies Their foray into the e-mobility space emphasizes the importance of cuttingedge technology in shaping the future of transportation

Another major player is Accel Partners, with a track record of backing disruptive startups. Their interest in the e-mobility sector signifies a recognition of the transformative potential of electric vehicles (EVs) in the Indian market.

Angel Investors: Nurturing Startups for the Long Haul

Angel investors, often seasoned entrepreneurs themselves, are actively nurturing the growth of startups in India's e-mobility space Ratan Tata, the chairman emeritus of Tata Sons, has been a notable figure investing in e-mobility startups His strategic investments not only provide financial support but also offer valuable industry insights and mentorship to emerging ventures

Another key angel investor is Anand Mahindra, the chairman of the Mahindra Group, a major player in the automotive sector Mahindra's personal investments in e-mobility startups showcase a commitment to f t i i ti ithi d b d th b d i f hi t

Sovereign Funds: Long-Term Vision for Sustainable Transportation

Sovereign wealth funds are increasingly recognizing the long-term potential of India's e-mobility market The National Investment and Infrastructure Fund (NIIF) of India has made significant strides in supporting the sector Their focus on infrastructure development aligns with the critical need for robust charging infrastructure to support the widespread adoption of electric vehicles

The Abu Dhabi Investment Authority (ADIA) is another sovereign fund making inroads into India's e-mobility sector Their interest reflects a broader global perspective on the importance of sustainable transportation, and their investments can catalyze the growth of environmentally friendly mobility solutions in India

Investment Strategies: Decoding the Patterns

Analyzing the investment strategies of these key players reveals a multifaceted approach VCs often seek startups with scalable and disruptive technologies, recognizing the potential for rapid growth and market dominance Angel investors, leveraging their experience, look for ventures with a strong founding team and a clear vision for the future Sovereign funds, with a focus on long-term sustainability, are likely to prioritize investments that contribute to building a comprehensive and eco-friendly e-mobility ecosystem

What Investors Look For: Insights from the Pioneers

Insights from these investors provide a glimpse into what they prioritize when considering e-mobility ventures Cutting-edge technology, scalability, a strong founding team, and a clear roadmap for sustainability are common themes Investors also value startups that address critical challenges, such as charging infrastructure and battery technology, contributing to the overall growth and viability of the e-mobility sector.

In conclusion, the spotlight on major investors in India's e-mobility sector underscores the pivotal role they play in steering the country towards a sustainable and electrified future. Their strategic investments not only infuse capital but also bring valuable expertise and mentorship, propelling the growth of innovative startups that are driving the e-mobility revolution in India As the wheels of innovation continue to turn, these investors stand as key pillars, supporting the transition to a cleaner and more sustainable transportation landscape

TOP EV TWO WHEELER SALES IN INDIA, FEBRUARY 2024

TOP EV THREE WHEELER SALES IN INDIA, FEBRUARY 2024