The government of India in this regard has set an ambitious target of achieving 30% electric vehicle penetration by 2030. However, the high upfront prices of EVs remain a considerable hurdle for widespread adoption.
EV financing comes as the provision of loans or other forms of financial support to facilitate customers to purchase EVs. These financing solutions can be delivered by banks, non-banking financial companies (NBFCs), or other financial institutions.
What is EV financing?
One of the most considerable advantages of EV financing is that it enables customers to pay for their EV over an extended period, making it more affordable.
Advantages of EV financing
Banks and NBFCs in India are now offering specialized EV financing with lower interest rates and flexible repayment options, such as ICICI and Bajaj.
EV Loans by Indian Banks
Automotive manufacturers like Mahindra Electric, Tata Motors, and Hyundai offer attractive financing options for EVs, boosting sales.
EV Loans by Indian Banks
According to a report by the Society of Manufacturers of Electric Vehicles (SMEV), the number of EV four-wheelers sold in India increased by more than half in the financial year 2020-21 compared to FY 19-20.