Blue Energy Motors Raises $30 Mn To Develop EV & LNG Trucks

SUMMARY

The fresh capital will be used to optimise existing capacity, advance liquefied natural gas (LNG) and electric truck development, and expand the startup’s footprint across India

Founded in 2020 by former Asia Motor Works managing director Anirudh Bhuwalka, Blue Energy Motors builds eco-friendly trucks that run on LNG instead of diesel

It claims to have sold around 1,000 LNG trucks to large enterprises such as Flipkart, Reliance Industries, JSW Steel, and Nestlé

Electric truck manufacturer Blue Energy Motors (BEM) has secured $30 Mn (INR 264 Cr) in a funding round led by Zerodha cofounder Nikhil Kamath and listed textiles company Omnitex Industries. The fresh capital will be used to optimise existing capacity, advance liquefied natural gas (LNG) and electric truck development, and expand the startup’s footprint across India.

Founded in 2020 by former Asia Motor Works managing director Anirudh Bhuwalka, Blue Energy Motors builds eco-friendly trucks that run on LNG instead of diesel. The company claims its long-distance, LNG-powered green trucks have already clocked more than 50 Mn km on Indian highways. Its electric heavy-duty trucks for short-haul operations are slated for launch soon.

To date, BEM has raised about $50 Mn from investors including Essar, Exponentia Ventures, and FPT Industrial, part of Italy’s Iveco Group. The startup also claims to have sold around 1,000 LNG trucks to large enterprises such as Flipkart, Reliance Industries, JSW Steel, and Nestlé.

Earlier this year, BEM signed a pact with the Maharashtra government to set up an electric truck manufacturing facility with an initial investment of $400 Mn (INR 3,500 Cr). The proposed plant is expected to produce around 30,000 EV trucks.

The startup’s push to roll out its line of EV heavy duty trucks comes at a time when fleet operators as well as regulatory bodies are exploring replacements for the traditional diesel trucks. Although diesel trucks are few in number but cause a huge chunk of India’s air pollution, with some studies linking diesel truck emissions to asthma, lung cancer, and heart diseases as well.

The government is also doubling down on a policy framework to push the more polluting trucks from Indian roads. Important to note that the Central Government has earmarked INR 500 Cr to promote electric truck adoption under the PM E-Drive. The scheme aims to support roughly 5,600 electric trucks across India.

“Diesel trucks, though constituting only 3% of the total vehicle population, contribute to 42% of transport-related greenhouse gas emissions and significantly worsen air pollution. This pioneering scheme… represents India’s first dedicated support for electric trucks,” heavy industries minister HD Kumaraswamy has remarked.