Around the world, the sustainable energy revolution is rapidly gaining traction and zero-emission mobility is now a stated target for many economies as well as vehicle manufacturers. In India, the Electric Vehicle sector is still in a nascent stage but going at an astonishing pace. This is facilitated by the union and state governments implementing forward-looking EV policies addressing regulations, rules, standards as well as providing financial incentives.
India’s electric vehicle financing market is expected to be about 150 Billion US dollars by 2030, which is nearly 80% of the country’s present retail vehicle loan volume. This opens a lot of room for a new financing methodology and for companies in the vehicle financing sector to understand and underwrite EV ownership at lease financing. Beyond the simple loans though there is the opportunity to finance both start-ups as well legacy industry players for a host of opportunities within the ecosystem, such as, for example, battery manufacturing, battery swap technology, various software applications for charge-point operations, interstate roaming, integration of payment apps and even charger manufacturing. Significant risk-related investments by venture capital funds and private equity players are going to be required in each element of the EV ecosystem in India in order to ensure that move to zero-emission mobility is not constrained by various bottlenecks over the next 10 years.
In this episode with Vasudha Madhavan Founder at Ostara Advisors, we look in-depth at the impact that the finance sector in India will have on the electric mobility sector and how it needs to be a crucial pillar of the very foundation of India’s move to zero-emission mobility.