NITI Aayog and Rocky Mountain Institute (RMI) India released a new report called ‘Mobilising Electric Vehicle Financing in India’.
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The new report highlights the role of finance in India’s transition to electric vehicles (EVs) and analyses that the transition will require a total capital investment of $266 billion (₹19.7 lakh crore) in EVs, charging infrastructure, and batteries over the next decade.
The report also identifies a market size of USD 50 billion (Rs 3.7 lakh crore) for the financing of EVs in 2030—about 80% of the current size of India’s retail vehicle finance industry, worth USD 60 billion (Rs 4.5 lakh crore) today.
End-users currently face several challenges, such as high interest rates, high insurance rates, and low loan-to-value ratios.
To address these challenges, NITI Aayog and RMI have 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.
