Macquarie Plans to Launch EV Financing Platform in India

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Updated On: 19-Dec-2023 07:20 AM

The firm will invest a total of $400 million into the EV platform and over the next seven to eight years the firm is aiming to invest $1.2-2 billion for the NBFC.

Australian investment firm Macquarie plans to launch an EV financing platform in India to help commercial fleet owners. The NBFC aims to increase the EV adoption rate in the country by providing financing services through its latest platform.

Macquarie, an Australian financial services firm, is planning to set up an Electric Vehicle (EV) platform in India by launching a non-banking financial company (NBFC). The NBFC will help shorten the gap of EV adoption in India as commercial fleet owners can now avail credits through Macquarie’s platform.

The firm is expected to apply for a licence with the Reserve Bank of India (RBI) according to one official at the firm. “Informal discussions with the regulator have taken place and the firm is likely to file officially in the last quarter of the current financial year,” he stated.

Investment Budget and Future Plans

The firm will introduce an end to end EV platform in the country offering benefits such as fleet leasing, battery services and heavy transportation solutions as per one of the officials.

The firm will invest a total of $400 million into the EV platform and over the next seven to eight years the firm is aiming to invest $1.2-2 billion for the NBFC.

This isn’t the first time the Australian firm has invested in India’s EV industry, recently the firm has announced a partnership with Indian EV charging company ChargeZone to increase charging infrastructure in the country.

The investment company had a total assets of $250 billion as of 31st March and has been investing in India through its Asia fund for infrastructure development in the country.

Growth Potential of NBFC in India

The former Chief Executive Officer of Orix India will lead the NBFC, with his consumer finance experience the company is set to grow rapidly in India.

The Indian light truck and bus segments are expected to grow by 25% and 15-20% by 2030 as per a Bain & Co report published last year. The report stated that total light truck and bus sales will reach approximately 9,30,000 and 1,75,000 units.

India’s electric vehicle market offers a great opportunity for growth as many e-buses are acquired by the state government. Additionally, the Indian government is also aiming to introduce around 50,000 electric buses by 2027 which will greatly benefit the NBFC.