The EV Wave: Indian Fintech Startups Fuel Electric Vehicle Sales

Climate change, pollution, and sustainability are the keywords driving our civilisation right now. It is not just imperative but also morally our duty to understand and take the necessary steps to curb these negative effects. One such step taken by governments worldwide is the shift to electric vehicles (EVs). 

While petrol and diesel vehicles still dominate our choice of commute, there is an increase in the percentage of people opting for electric vehicles or at least wanting to shift to them. This has been one of the major reasons behind more NBFCs and fintech companies offering EV loan financing. 

India, with its vast population, one of the fastest-growing economies and the world’s fourth-largest auto market, has a big responsibility and commitment to expand its renewable energy reserves. The impetus has been largely from the government, encouraging people to move towards EVs. 

Future Prospects For The Country

According to a Bridge India report, as of November 2019, a total of 280,994 electric vehicles had been sold in India. The government is also pushing the EV agenda and has recently ramped up its FAME 2 incentives to boost the market. 

There has been an exponential growth and focus on EV financing and it just goes on to show the people’s changing mindset towards it. This is important to understand consumer preferences and what is their key motivator. The next decade looks to be a bright prospect for India as the country focuses on heightened EV adoption. The government’s NEMMP (National Electric Mobility Mission Plan) is projected to increase the penetration of electric vehicles by up to 30% by 2030. There has already been a big push towards lightweight, battery-powered three-wheelers and e-rickshaws in many parts of the country. 

Electric Vehicles Are The Smart Choice

Amid an economic downturn and geopolitical tensions, the prices of petrol and diesel have risen exponentially and have started to affect day-to-day lives. Rising pollution and costs make it easier to decide to opt for electric vehicles, be it cars or two-wheelers. 

Driving or riding an EV helps us choose a cleaner and greener alternative, save massively on fuel costs, has low maintenance costs and even helps one get tax subsidies. EVs are one of the safest alternatives today and compared to petrol, the cost of charging an electric vehicle is much lower. 

For example, an EV costs around INR 0.97 per km compared to INR 6.24 per km for a petrol version. Can you imagine the savings over a year? The cost of maintaining an electric vehicle is also much cheaper than a petrol or a diesel vehicle. With more improved versions coming in, this difference is only expected to get wider. The government is supporting the cause of clean fuel and to this effect, has offered tax subsidies up to INR 1.5 Lakhs on the purchase of an electric vehicle. The thrust is on encouraging the purchase of electric vehicles to reduce vehicular pollution on the roads.

India Runs On Two-Wheelers & Fintechs Make It Easier

It is no new information that India runs on two-wheelers! Especially popular amongst the middle class. Many Indian fintech startups have made ebikes affordable by offering loans with a minimum down payment option. 

With attractive interest rates and low-cost EMIs, bike loans have made it easier for people to purchase a two-wheeler. In this fast-paced life, shopping for everything online is the first option for many customers. Spending more time on ecommerce sites to shop from the comfort of one’s home is hardly a point of contention. These fintech companies recognise the power of online shopping and bring an accessible and easy-to-use digital lending platform, where one can apply for an e-bike loan online.

Not Just A Fad!

Electric vehicles are not just the latest trend, but rather they are what is making our future brighter. It is a vehicle revolution, and a huge leap when it comes to cleaner air and better living conditions. Making EVs affordable for all is the goal. They are better for the climate, are cheaper and will go a long way to fight for the health of the planet. 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.