EV Financing in India: Challenges & Growth with Revfin

The role of the electric vehicle (EV) as a disruptor is slowly but surely sealing its place across India. Its sales surge, as viewed in the two-wheeler and three-wheeler categories, ably fed into government endeavors like FAME-2. This program provides incentives and subsidies to electric vehicles and associated charging infrastructure. Programs for phasing in manufacturing and PLI schemes seek support for the domestic production of EVs.

These efforts themselves depict a promising picture of the future wherein the numbers are expected to reach 30-35 lakh units by 2026, basically driven by 2W adoption. Said differently, the electric vehicle finance market is bound to boom to INR 45-55 thousand crore by 2026.While the outlook is positive, electric vehicle finance remains one of the most significant challenges to faster adoption. Challenges and opportunities in the Indian Electric vehicle finance landscape are discussed in detail as follows.

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