Electric vehicle financing industry projected to reach Rs 3.7 lakh crore by 2030: report
The electric vehicle (EV) financing industry in India is projected to reach a level of Rs 3.7 lakh crore by 2030. It accounts for about 80 percent of the current retail vehicle financing industry.
The report released by NITI Aayog and Rocky Mountain Institute (RMI) India titled ‘Raising Finances for Electric Vehicles in India’ states that many challenges such as high-interest rate, high insurance rates and low debt to value ratio to users are there.
According to the report, India will need to cumulatively invest $266 billion (Rs 19.7 lakh crore) in EVs, charging stations and batteries over the next decade to adopt electric vehicles.
It has identified a ‘toolkit’ for 10 solutions that financial institutions such as banks and non-banking financial companies (NBFCs) can adopt with industry and government to catalyze the necessary capital.
The report states, “India’s electric vehicle financing industry will grow to Rs 3.7 lakh crore in 2030, which is 80 percent of the country’s current $60 billion (Rs 4.5 lakh crore) size retail vehicle financing industry.”
According to this, the 10 solutions recommended include debt and interest assistance to the primary sector as a financial measure.
The report said that investing in electric vehicles in the country can bring economic, social and environmental benefits to the country on a large scale.
