Qatar Investment Authority (QIA) expressed strong optimism about India’s electric vehicle market amid its emerging interest in this particular sector, Asian Investor reported.
QIA Advisory’s Asia-Pacific Investments Head, Abdulla Al-Kuwari, stated at the 10th Milken Asia Summit in Singapore that the Middle East fund is currently allocating significant investments in the EV sector due to its potential growth and innovation.
“The electric vehicle (EV) space is where we have been investing a lot.”
Abdulla Al-Kuwari, Asia-Pacific Investments Head at QIA Advisory
About QIA
QIA, the world’s 10TH biggest sovereign wealth fund, has started to redirect its focus and resources to the EV sector, with a special interest in the Indian market.
It was initially founded in 2005 to efficiently manage the liquified natural gas revenue of Qatar, the report noted.
The QIA Advisory is its local business unit in Asia, with major active investments in the region.
QIA and other major investors like Blackrock spent $908.7 million in investment for a minority stake in South Korea’s SK On. For context, it is the fifth leading battery maker in the world.
India to hit 10 49% CAGR from 2022 to 2030
Indian Economic Survey 2023 forecasts the country’s EV industry to hit a 49% CAGR (Compound Annual Growth Rate) from 2022 to 2030, Clayton County Register reported.
Furthermore, it expects the market to reach an annual sales of 10 million units by 2030.
In hindsight, the local EV industry has already recorded its first million sales milestone last year. Of that total, two-wheeler EVs dominated the majority of the sales.
Companies planning to invest in India
Apart from QIA, other global players have also announced plans to invest or expand their presence in the Indian EV market.
For instance, British Petroleum invested in EV delivery startup Magenta in April and in EV ride-hailing firm BluSmart Mobility in May.
Moreover, South Korean automaker Hyundai also confirmed plans to allocate approximately $2.5 billion to solidify its presence in the Indian EV industry in the next ten years.
Taiwan-based contract manufacturer also aims to erect a local production line for electric two-wheeler models in the country.
In addition, the world’s most valuable automaker, Tesla, is currently negotiating with the government for potential investments in the country.
All these considered, it is no wonder why QIA has formed a significant interest in the country’s EV sector.
“China is one of the biggest markets for us in terms of emergy transition. They are ahead of many markets in this space. India will likely be the next one in the EV space for us to deploy capital.”
Abdulla Al-Kuwari, Asia-Pacific Investments Head at QIA Advisory
Apart from that, the country’s retail industry has also been flourishing recently. Therefore, QIA committed $1 billion in funds to Reliance Retail Ventures.
“In India, we believe in the retail space.”
Abdulla Al-Kuwari, Asia-Pacific Investments Head at QIA Advisory
See Also:
- Subaru to launch EV production in Indiana
- Tesla allocates $1.9B for India-made automotive components, Minister reveals
- Two-wheeler and Three-wheeler EVs boost clean mobility shift in India
- India to stimulate electric vehicle investments with new policy, minister says
- Six major states dominated 60% of the Indian EV market in Jan to August period
ndia’s EV industry continues to expand owing to the government’s recent efforts to promote the technology and attract investments from global companies.
In August 2023, its EV sales reportedly grew 43% year-on-year to 1,26,324 units. Two-wheeler EVs accounted for 89.81% of the overall registrations in the same month, EMOBILITY+ indicated.
