Bharat Forge Advocates for an Innovative Electric Vehicle Strategy in India

Bharat Forge, a leading Indian multinational, has urged for a more innovative approach to electric vehicles (EVs) in India's climate action plan. The company suggests moving away from China's battery-based model. Speaking at the India Global Forum’s Climate and Business (ClimB) session in London, Amit Kalyani, the company's vice-chair and joint managing director, highlighted the potential of inductive electric charging as India's highway infrastructure develops.

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Inductive Charging as an Alternative

Kalyani pointed out that the high cost of EVs is mainly due to expensive batteries. He believes an alternative model could significantly boost sales of eco-friendly vehicles. "I believe that we are all following the wrong model because everybody is copying what China did and is using the Chinese template for electric vehicles, which is a battery-based electric model," said Kalyani.

He further explained that countries like India, which are building infrastructure from scratch, have a unique opportunity. By incorporating inductive electric charging into highways, the need for large batteries can be reduced dramatically. This would lessen the reliance on harmful chemicals and mining activities, predominantly controlled by Chinese companies in Africa.

Financing Green Initiatives

The ClimB session also focused on financing needs for green projects. Julia Hoggett, CEO of the London Stock Exchange (LSE), noted that India requires substantial green financing—2.5% of GDP until 2030, escalating to trillions for energy transition towards net zero. She emphasised creating mechanisms for companies in the Global South to invest in such projects.

Kate Hampton, CEO of Children’s Investment Fund Foundation (CIFF), stressed the need for a global financial architecture to support energy transitions where affordability is a concern. "There's a lot to be done in terms of making our financial system work for the energy transition in places where affordability is a real issue," she said.

Role of Green Hydrogen

The discussion also covered green hydrogen's role in transitioning away from fossil fuels. Rahul Munjal, Chairman and Managing Director of Hero Future Energies, stated that while hydrogen is important, electrifying everything possible should be prioritised. "Everything we can electrify, we should electrify because we found a way to decarbonise the grid already through renewables," he said.

Munjal questioned whether green hydrogen is the ultimate solution it’s often touted to be. "Is green hydrogen the silver bullet that we have all been looking for and does it have the promise that it's all hyped up to be? At least in smaller projects it's here and now, large scale not yet," he added.

Global Investors Forum

Following the ClimB session, IGF London hosted its first Global Investors Forum with a market close ceremony at LSE. Darko Hajdukovic, Head of New and Private Markets at LSE plc, remarked on India's growth: "Over the past 30 years, approximately 100 Indian companies and funds have financed their ambitious plans through our markets."

IGF Founder Manoj Ladwa highlighted London's financial expertise and robust capital markets as key contributors to India's growth. He noted that these elements create pathways for significant investments in infrastructure, innovation, and sustainable development.

The forum underscored London's role in facilitating capital flows into one of the world's fastest-growing major economies. This collaboration aims to support India's ambitious growth trajectory through substantial investments in various sectors.

The discussions at ClimB and IGF London reflect a broader commitment to advancing climate solutions and sustainability initiatives globally. These efforts are crucial as nations strive towards achieving net-zero emissions by 2050.