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Macquarie launches Vertelo to accelerate EV adoption in India
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Macquarie Asset Management is eyeing a share of the electric vehicle pie in India. The company has launched a new platform for end-to-end fleet electrification called Vertelo. The company is also committing to invest $1.5 billion over the next 10 years.
The electric vehicles (EVs) market in India is currently valued at approximately $2 billion, with projections soaring to reach $5 billion in the near future. Recognizing the immense potential of this burgeoning sector, Australian financial services powerhouse Macquarie has unveiled its latest initiative: Vertelo, a cutting-edge platform dedicated to accelerating the widespread adoption of EVs across India.
Abhishek Poddar, Group Head of India at Macquarie Group, outlined the ambitious goals of Vertelo, emphasising its pivotal role in facilitating the transition of heavy transportation from conventional diesel to electric power. “Our objective is to provide comprehensive solutions that encompass financing, leasing, charging infrastructure, energy and battery management, as well as fleet maintenance services,” stated Poddar.
The Vertelo platform comprises two key entities: one offering non-credit solutions such as operating leases and services, and the other geared towards providing credit solutions, pending approval from the Reserve Bank of India for a non-banking financial company (NBFC) license. Once the NBFC is in place, that company aims to provide credit as a solution, alongside other services such as charging infrastructure and fleet management.
With a commitment of $1.5 billion earmarked for investment over the next decade, Vertelo aims not only to drive the adoption of EVs but also to significantly reduce greenhouse gas emissions. Strategic partnerships have already been forged with industry stalwarts including Tata Motors, BEST, JBM Group, and Eka Mobility.
Poddar further announced Vertelo’s inaugural transaction involving 444 electric buses with Chalo Mobility, a prominent travel aggregator and bus operator in Mumbai. These buses are poised to play a pivotal role in advancing the city’s decarbonisation agenda. Additionally, agreements have been inked with Tata Motors for the acquisition of 2,000 cars over three years, along with procurement plans for 2,000 buses from both Eka Mobility and JBM Auto.
Macquarie’s entry into the EV solutions arena is marked by its comprehensive approach, encompassing credit provision, operational support, and infrastructure development. However, this initiative arrives amidst a backdrop of tepid global demand for EVs, highlighting both the challenges and opportunities inherent in the evolving automotive landscape.
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