India Now Stands The Fourth Largest Funded Market in Electric Vehicles; Claims Study

Published  February 10, 2023   0
S Staff
Electric Vehicle- India

The overall investment in this industry has augmented by 117 per cent, from $766mn in 2021 to $1.66bn in 2022

Media reports now claim that India is now the third largest market for electric vehicles in terms of volume of companies. In this sector, the country is now just lagging behind China and the US, but it is also the fourth largest market in terms of funds and investments. According to Neha Singh, co-founder of Tracxn, a start-up data platform, growth booster initiatives by the government such as the FAME II scheme have increased the momentum of revenue of this industry. The scheme has rapidly electrified public transportation, as well as other important issues such as increasing prices of oil and increasing environmental concerns.

Also, the Union Budget 2023-24 has unleashed new rules for this industry that includes exemptions on customs duty on capital goods and machineries for the manufacture of EV batteries. Moreover, the budget also added a reduction in duty on lithium batteries to 13 percent from 21 percent. Experts added that these decisions will perk-up investments and reduce prices of electric vehicles. The overall investment in this industry has augmented by 117 per cent, from $766mn in 2021 to $1.66bn in 2022.

Market intelligence platform Tracxn mentioned that the EV industry grabbed only four $100 million+ investment rounds in 2022, compared with just two in 2021.  As per an exclusive report of Business Today, the market intelligence firm further added that Late-stage funding in the sector also rose 124 percent to $1.02 billion in 2022. Early-stage funding, too,  witnessed a massive growth of 160 percent from $202 million in 2021 to $526 million in 2022. The average ticket size of early-stage investments rose sharply by 112 percent this year, according to the report.

The survey report clearly mentioned that in India, the big late-stage investors are Tekne Capital Management, GIC, and the Rise Fund, while biggest early-stage investors are Tiger Global Management, Sequoia Capital, and Qualcomm Ventures. Blume Ventures, Micelio, and GrayCell Ventures are the top seed-stage investors in this industry.