India is poised to become the next major market for electric vehicles (EVs), attracting the interest of Qatar Investment Authority (QIA). The Middle East sovereign wealth fund has been actively investing in various sectors, with a particular focus on the EV space. According to Abdulla Al-Kuwari, head of Asia-Pacific investments at QIA Advisory, India is likely to be the next target for the fund to deploy capital in the EV sector, following China’s lead.
The Indian Economic Survey 2023 by India’s finance ministry predicts a significant growth in the country’s EV market, with a compound annual growth rate (CAGR) of 49% between 2022 and 2030. The survey estimates that annual EV sales in India will reach 10 million by 2030. Notably, India achieved a significant milestone in 2022 by selling 1 million EVs, with electric two-wheelers accounting for a major share of those sales.
QIA’s interest in the Indian EV market is not unique, as other international companies such as British Petroleum, Hyundai Motor, and Foxconn have also been increasing their investments in this sector in India. QIA’s focus on India extends beyond EVs, as the fund has invested $1 billion in Reliance Retail Ventures, a major player in the country’s retail sector.
Apart from the EV sector, QIA is actively exploring other investment themes in Asia, such as the growth of retail markets, technology, and new economy real estate. The fund has set up its Singapore office to gain access to Asia’s largest companies and investors, and it looks for long-term partners in each country it deems important.
Overall, QIA’s investment strategy involves identifying companies with good business models and partnering with them to provide risk capital. The fund has been investing in private credit in the US and Europe and now aims to expand its private credit investments in Asia, particularly in the real estate sector.
In conclusion, QIA’s keen interest in India’s EV market can be seen as a testament to the country’s potential for growth in the electric mobility sector. With significant investments flowing into the sector from international players, India is poised to play a crucial role in the global transition to electric transportation.
Sources:
– Indian Economic Survey 2023 by India’s finance ministry.
– Haymarket Media Limited.