Private equity investment in India’s electric vehicle (EV) industry could top a billion dollars this year, say experts, as investors see new policy initiatives and rising cost of fossil fuel accelerating the adoption of green mobility.

Investors pumped in $906 million through 26 deals in the nine months to the end of September, including in battery manufacturing and battery swapping and charging stations, according to data from Venture Intelligence. In 2021, the sector had received $1.8 billion in investment from 31 deals.

“We believe that EVs are at an inflexion point across multiple vehicle categories–the total cost of ownership is already favourable for two-wheelers and is near par for three-wheelers,” Padmanabh Sinha, executive director and CIO, private equity, National Investment and Infrastructure Fund (NIIF), told ET.

The Narendra Modi-led government has set a goal for EVs to make up 30% of private cars, 70% of commercial vehicles and 80% of two- and three-wheelers by 2030.

This month, EV components maker Vecmocon raised $5.2 million from investors led by Tiger Global and Blume Ventures. So did Revfin, the financing platform for individual drivers, which closed a $10 million Series A round led by Green Frontier Capital (GFC), India’s first venture capital fund that is focusing on climate-related investment.

As per a report by Blume, by 2030, sales of electric two-wheelers in India are expected to grow by 24 times their current level to touch 17.69 million units.