EV sales have been continuously multiplying in the country. EV penetration, which was around 1% at the beginning of FY23, topped 5% by the end. However, financing, which acts as an enabler, may grow at a tepid pace impacting overall adoption rates. The risk matrices for EVs as a lending class are yet to crystalise, and there’s no secondary market for them, unlike traditional vehicles, impacting the appetite of financiers.
What policy measures will come up to allay the fears of financiers?
Can some instruments like the World Bank–SIDBI First Loss Guarantee kick-start the EV financing revolution in the country