Blue Energy Motors, an Indian start-up that makes liquefied natural gas (LNG)-fuelled trucks, plans to raise $100 million by January to fund capacity expansion, its chief executive said, reflecting a shift to cleaner fuel options.
The company aims to triple its sales to 3,000 LNG-powered trucks next financial year, which starts in April 2025, and will soon launch its first electric truck, CEO Anirudh Bhuwalka told Reuters in an interview.
"We are raising $100 million to scale up business. This funding will support the manufacturing of both electric and LNG trucks."
Blue Energy, India's first LNG truck manufacturer, was valued at $250 million in its previous fundraising round.
It has a manufacturing facility in Pune, a key industrial hub in western India, with the capacity to produce up to 10,000 trucks annually, and has partnered with Italy's Iveco Group to source engines for its LNG trucks.
"As we approach the milestone of 6,000 or 7,000 units, I can set up another truck facility within six months," Bhuwalka said.
The company has been steadily growing its fleet of trucks, which are designed for long-haul transportation, offering the logistics industry a more sustainable alternative to traditional diesel vehicles.
Industry experts say LNG-powered trucks emit up to 30% less CO2 than diesel ones, while cutting harmful particulate matter by up to 98% and sulphur oxides by up to 100%.
"Currently, India has 4 million heavy-duty trucks that emit nearly 450 million tons of CO2 per year. If nothing is done, this number will more than double to 900 million within the next decade," Bhuwalka warned.
India, one of the world's largest greenhouse gas emitters, has set a target of net-zero carbon emissions by 2070, with the government pushing for cleaner fuel alternatives to help reduce emissions.
While LNG truck adoption in India is still limited to long-haul routes due to an underdeveloped network of LNG refuelling stations, Bhuwalka expects electric truck sales to grow quickly.
"The sales of electric trucks are expected to accelerate as battery prices continue to fall."
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