Blue Energy Motors To Raise $100M For EV expansion

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In its last funding round in 2023, the company secured roughly USD 10 million.

Blue Energy Motors, a prominent manufacturer of liquefied natural gas (LNG) trucks, is actively seeking to raise USD 100 million in funding to facilitate its expansion into the electric vehicle sector. The company’s CEO, Anirudh Bhuwalka, shared with Autocar Professional that they anticipate completing the fundraising process within three to six months.

In its previous funding round approximately a year ago in 2023, Blue Energy Motors successfully raised around USD 10 million. Among the notable investors in this initial round was FPT Industrial, a division of the Iveco Group, which provides engines for the company’s LNG trucks.

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Bhuwalka highlighted the potential of electric trucks, particularly for short-haul applications. However, he pointed out that a significant obstacle is the higher capital costs associated with electric trucks. For example, the upfront cost of an electric truck is estimated to be around Rs 1 crore, in contrast to Rs 60 lakh for an LNG truck and approximately Rs 40 lakh for a diesel truck. Additionally, the payback period for an electric truck is about four years, owing to greater fuel savings, compared to 18 to 24 months for an LNG truck. Therefore, it is only after four years that the investment in an electric truck is expected to yield substantial returns.

Bhuwalka emphasized that favourable financing options from banks and other financial institutions for electric commercial vehicles could significantly accelerate their adoption. Last year, Blue Energy Motors sold around 400 of its LNG trucks.

This development should be viewed in the context of the anticipated growth in India’s trucking market, which is expected to quadruple in size from four million trucks in 2022 to 17 million trucks by 2050. While this growth will contribute to the nation’s economic development, it will also lead to an increase in transportation emissions. According to a recent report by Niti Ayog, LNG presents a viable alternative to diesel trucks, with projections indicating that LNG heavy-duty vehicle (HDV) sales could reach 10% per year by 2032.

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