{"id":20073788,"date":"2021-03-17T14:43:00","date_gmt":"2021-03-17T09:13:00","guid":{"rendered":"https:\/\/www.thethirdpole.net\/?p=73788"},"modified":"2021-06-04T14:50:50","modified_gmt":"2021-06-04T09:20:50","slug":"electric-vehicle-financing-in-india-to-touch-usd-50-billion-by-2030","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/electric-vehicle-financing-in-india-to-touch-usd-50-billion-by-2030\/","title":{"rendered":"Electric vehicle financing in India to touch USD 50 billion by 2030"},"content":{"rendered":"\n

India\u2019s clean mobility transition will require a cumulative capital investment of INR 19.7 trillion (USD 266 billion) in electric vehicles (EVs), charging infrastructure and batteries over the next decade, a new report has estimated.<\/p>\n\n\n\n

The report \u2014 Mobilising Electric Vehicle Financing in India<\/a> \u2014 says that the domestic market for financing EVs will be INR 3.7 trillion (USD 50 billion) by 2030, which is about 80% of the current size of India\u2019s retail vehicle finance industry that is worth INR 4.5 trillion today.<\/p>\n\n\n\n

India\u2019s EV ecosystem has so far focused on overcoming adoption hurdles associated with technology cost, infrastructure availability and consumer behaviour, said the report by the government think tank Niti Aayog and US-based Rocky Mountain Institute (RMI).<\/p>\n\n\n\n

Financing is the next critical barrier that needs to be addressed to accelerate India\u2019s electric mobility transition, the report said.<\/p>\n\n\n\n

\u201cThe need of the hour is to mobilise capital and finance towards EV assets and infrastructure,\u201d said Amitabh Kant, CEO, NITI Aayog. \u201cAs we work towards accelerating the domestic adoption of EVs and push for globally competitive manufacturing of EVs and components like advance cell chemistry batteries, we need banks and other financiers to lower the cost and increase the flow of capital for electric vehicles.\u201d<\/p>\n\n\n\n

The EV ecosystem must design solutions to address barriers across policy, technology, economics and behaviour to support the adoption of EVs in India, the report said. Simultaneously, reengineering vehicle finance and mobilising public and private capital will be critical.<\/p>\n\n\n\n

India consumers currently face several challenges, such as high interest rates, high insurance rates and low loan-to-value ratios. To address these challenges, the report has identified a toolkit of 10 solutions that financial institutions such as banks and non-banking financial companies (NBFCs), as well as the industry and government can adopt in catalysing the required capital.<\/p>\n\n\n\n

\u201cRe-engineering vehicle finance and mobilising public and private capital will be critical to accelerating the deployment of the 50 million EVs that could be plying on India\u2019s roads by 2030,\u201d said Clay Stranger, senior principal at RMI. \u201cThese solutions represent high-leverage areas for interventions in finance, and we believe that many are relevant beyond India.\u201d<\/p>\n\n\n\n