March 22, 2019 — India has unveiled a €1.3 billion financing initiative designed to scale up its fleet of electric public transport and ride-hailing vehicles. This announcement builds on an extraordinary commitment the subcontinent made three years earlier: to electrify the entire nation's automotive sector by 2030.

India launched this audacious vision in 2016, pledging to transition its entire vehicle fleet to electric power within a decade. Months before, the government had allocated 9 billion rupees—€117 million—to advance this goal. Public transport vehicles became the initial focus of this investment. The Indian government recognized the dual opportunity: not only would electrification advance environmental goals, but it could also help alleviate the staggering traffic congestion plaguing major cities. Fast forward to this year, and the government has dramatically escalated its commitment. What began as a 9-billion-rupee initiative has now grown to an announced 100 billion rupees (€1.3 billion) investment unveiled last week.

1.55 Million Vehicles Over Three Years

This new phase, unfolding across three years from now, is projected to bring 1 million two-wheelers, 500,000 auto-rickshaws, 55,000 cars, and 7,000 buses into service. All electric, and all classified as public transport. For perspective, India's automotive sector currently puts 3 million vehicles of all fuel types on the road annually.

This strategy engages every major player across the subcontinent's transport ecosystem. According to Les Échos, "Ola, India's answer to Uber, announced last year that it plans to deploy no fewer than 10,000 electric rickshaws within twelve months and one million electric cars by 2021. To fuel these ambitions in the electric vehicle space, the company officially confirmed on Tuesday a $300 million fundraising round in partnership with automakers Hyundai and Kia."

Thibault Bourru

Thibault Bourru — A passionate lover of literature and Asia, Thibault shares his insights and experiences through his writing.