Macquarie launches $1.5 billion EV platform in India

Macquarie Group of Australia unveiled a new electric vehicle (EV) financing platform for India on Monday, with an emphasis on electrifying fleets of commercial vehicles. Named Vertelo, the platform will allocate 95 per cent of its $1.5 billion investment towards this endeavour, aiming to revolutionise the country's transportation landscape.

At the launch event, Vertelo's Chief Executive, Sandeep Gambhir, outlined the platform's offerings, which include financing options, fleet management services, and solutions for charging infrastructure. Gambhir highlighted the platform's commitment to advancing electric mobility solutions tailored for commercial fleets.

The remaining 5 per cent of the investment will be directed towards enhancing charging infrastructure and addressing other essential requirements for electric vehicle adoption.

Previously, Macquarie had announced plans to collaborate with the United Nations' Green Climate Fund (GCF) to launch an EV financing platform, but without specifying allocation details. The decision to prioritize fleet electrification aligns with global trends, as EV sales face a slowdown prompting manufacturers to incentivize demand with discounts.

Initiatives like BluSmart and Lithium, backed by BP, operate electric taxi fleets, while Uber has introduced electric cars through partnerships with fleet operators.

Vertelo's ambitious plans include procuring up to 2,000 electric cars from Tata Motors over the next three years, along with a similar number of buses from electric bus manufacturers JBM Auto and Eka Mobility over the next three-to-five years.

The platform has already garnered equity investments totalling $405 million from Macquarie and the GCF. Over the next decade, Vertelo aims to deploy $1.5 billion towards accelerating the adoption of electric mobility solutions in India.

In a related development, Macquarie recently acquired a minority stake in Charge Zone, an Indian fast-charging infrastructure provider, signalling its commitment to supporting the EV ecosystem's growth and development in the country.

(With Reuters inputs)