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There's a shift in EV funding pattern, VC's are concerned

Inc42Inc42 · 12m
There's a shift in EV funding pattern, VC's are concerned

Investors are increasingly shifting focus away from electric vehicle (EV) manufacturers due to longer gestation periods, rising competition, and substantial capital requirements. Instead, they are directing attention towards allied sectors such as batteries, EV infrastructure development, and related segments. The Indian EV sector has garnered over $780 million in 2023, with more than 41% of deals involving non-original equipment manufacturers (OEMs). Investors are drawn to emerging areas like EV financing, charging infrastructure, and battery technology, seeing potential for innovation and scalability. Despite initial challenges, the EV sector continues to attract significant funding, fostering growth and innovation.

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