EV Startups Face Funding Challenges Amid Slowing Sales

Electric vehicle startups in India are grappling with a significant funding slowdown as sales growth decelerates. Investments in the EV sector plummeted to $586 million in 2024, down from $934 million in 2022. This 37% decline is attributed to policy shifts, including reduced subsidies under the PM E-DRIVE scheme, and investors' growing emphasis on profitability. EV sales growth has moderated to 24.5% in 2024, compared to 50% in the previous year. Despite these challenges, the government's target of 30% EV penetration by 2030 continues to drive optimism. Investors are now focusing on emerging areas such as component manufacturing, battery swapping, and charging infrastructure, seeking stronger unit economics before committing capital.

 

Source: The Economic Times