India is in the initial phase of EV adoption and proper infrastructure is the need of the hour. In pushing faster promotion, the key factor is EV financing where there are not many options. A major difference can be brought with the introduction of vehicle subscription and leasing options. And a few firms have commenced just that.
EV Leasing in the Pipeline
Such mobility solution providers let the users choose from customized financing options to rent a vehicle. Technically, users won’t own the car but can use them privately or commercially by paying a monthly or yearly charge. These plans cover zero down payment and a smooth way of doing the registration, insurance, road taxes, and similar on-road processes.
To give a kickstart, a handful of vehicle suppliers has already announced leasing plans and services for electric vehicles. These suppliers include Autovert, ETO Motors, Myles, and Orix Auto along with lending players like Mahindra Finance and Greaves Finance. Automakers such as Tata Motors and MG Motor are also upbeat about leasing, which currently accounts for 15-20% of the demand for their electric vehicles.
ALSO READ: Five Affordable Electric Cars in India
Commenting on the growing popularity of EV leasing, Mohammed Turra, Mahindra Finance’s head of leasing said, “Leasing is a sweet spot for EVs, nudging more consumers to buy them. In the commercial EV segment, at least 50% of the fleet operators have started using leasing and we are offering customised structured packages with flexibility towards leasing.”
Since India’s EV adoption is in a nascent stage, the Bengaluru-based startup Autovert has been changing the game of vehicle financing to a considerable level. The company is working with Ather Energy, a home-grown electric vehicle company, to offer leasing schemes for two-wheelers. Mahindra Finance is also following the footsteps for offering lease schemes for industrial and passenger electric vehicles.
ALSO READ: EV news roundup: Tesla to set up retail outlets in India soon; Ola electric car to arrive by 2023
Also, different states of the country are rapidly drafting and revising new EV policies to subsidise the purchase of electric vehicles. With this, the government is foreseeing reducing carbon footprint and increase the role of the EV sector in national GDP. To make a contribution to this vision, Reliance Jio-BP and BluSmart are planning to set up EV charging stations across India.
Source: 1
