Blue Energy Motors is seeking UDS 100 million in investment to support its entry into the electric vehicle market. Anirudh Bhuwalka, CEO of Blue Energy Motors, told that the fundraising process is likely to be completed over the next three to six months.
Blue Energy Motors raised around USD 10 million in its recent capital raising, which occurred a year ago in 2023. FPT Industrial, a subsidiary of the Iveco Group that supplies engines for Blue Energy Motors’ LNG trucks, was among the notable investors in the first round of funding.
Bhuwalka believes electric trucks have potential for short-haul applications. However, funding remains a huge difficulty because electric trucks have much greater capital expenses. For example, the initial cost of an electric vehicle (EV) would be roughly Rs 1 crore, as opposed to Rs 60 lakh for an LNG truck and Rs 40 lakh for a diesel truck. Furthermore, the payback period for an electric truck would be approximately four years because of the larger fuel savings, as opposed to 18–24 months for an LNG. As a result, the investment in an electric truck will not yield substantial returns until four years later.
If banks and other financial institutions provide favourable financing for electric commercial vehicles, it will significantly boost adoption, the top executive added. Blue Energy Motors sold around 400 of its LNG trucks last year.
The development should be seen in the context of India’s trucking market, which is expected to grow four times larger—ffrom four million trucks in 2022 to 17 million trucks by 2050. The development will help boost the nation’s economy but also increase transportation emissions. As per the recent Niti Ayog report, LNG provides a compelling alternative to diesel trucks. It is expected that LNG heavy-duty vehicle (HDV) sales per year will reach 10% by 2032.
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