NEW DELHI: The Electric Vehicle financing industry in India will be worth Rs 3.7 lakh crore in 2030, which will be around 80 per cent of the current retail vehicle finance industry, according to a report by NITI Aayog. The report titled “Mobilisng Electric Vehicle Financing in India” by NITI Aayog and Rocky Mountain Institute (RMI) India, found that end users face various challenges such as high interest rates, high insurance rates, etc.
The report said that transition to EVs will require a national investment of USD 266 billion in EVs, charging infrastructure, batteries, etc. It also identified a toolkit of 10 solutions which various financial institutions like banks and non-banking financial companies (NBFCs) and the industry and government can adopt to catalyse the required investment.
The report added that the 10 recommended solutions include financial instruments such as priority-sector lending and interest-rate subvention. Other solutions include creating better partnerships between OEMs (Original Equipment Manufacturers) and financial institutions by providing the product guarantees and warranties, the report said.