All India EVAll India EVAll India EV
Notification
Font ResizerAa
  • Home
  • EV News
  • EV Launch
  • Market Insights
  • Investments & Funding
  • Guest Articles
  • EV Engineering
  • Contact
Reading: India’s EV Transition Faces a Major Hurdle: The Need for Better EV Financing
Share
All India EVAll India EV
Font ResizerAa
  • Bussiness
  • Home
  • News
  • The Escapist
  • Electric
  • Entertainment
  • First Drives
  • Science
  • Hybrids
  • Technology
  • Blog
  • Insider
  • Contact
Search
  • Home
    • Home 1
    • Home 2
    • Home 3
    • Home 4
    • Home 5
  • Home
  • Categories
    • Electric
    • First Drives
    • Hybrids
  • Categories
    • Technology
    • Entertainment
    • The Escapist
    • Insider
    • Bussiness
    • Science
    • Health
  • Shows
    • Rap
  • More Foxiz
    • Blog Index
    • Contact
  • Bookmarks
    • Customize Interests
    • My Bookmarks
  • More Foxiz
    • Blog Index
    • Sitemap
Have an existing account? Sign In
Follow US
Home » Blog » India’s EV Transition Faces a Major Hurdle: The Need for Better EV Financing
EV News

India’s EV Transition Faces a Major Hurdle: The Need for Better EV Financing

Sunita
By
Sunita
Last updated: 18 March 2025
Share
3 Min Read
SHARE

India’s EV Transition Faces a Major Hurdle: The Need for Better EV Ecosystem

Contents
  • ✅Why EV Financing Needs Government Support
  • ✅ Proposed Solutions for Boosting EV Finance
  • ✅ What This Means for India’s EV Ecosystem

India’s shift to electric vehicles (EVs) is gaining momentum, but EV financing remains a major bottleneck. In a recent meeting with the central government’s think tank Niti Aayog, the Finance Industry Development Council (FIDC) urged the government to introduce a dedicated incentive scheme for EV financing, similar to the existing FAME (Faster Adoption & Manufacturing of Electric Vehicles) and Production-Linked Incentive (PLI) schemes.


✅Why EV Financing Needs Government Support

Non-banking financial companies (NBFCs) have pointed out several challenges in financing EVs:

  • No dedicated incentives: EV financing is currently treated the same as internal combustion engine (ICE) vehicle financing, offering no additional benefits to financiers.
  • Lack of standardized battery assessment: The absence of a clear framework for battery life evaluation and resale mechanisms increases financial risks.
  • Concerns over depreciation: Rapid advancements in battery technology create uncertainties about asset depreciation and resale value.
  • Limited battery degradation data: India lacks comprehensive data on battery performance under local conditions, making it difficult for lenders to assess risks.

✅ Proposed Solutions for Boosting EV Finance

To address these issues, the FIDC has suggested several key measures:

  • Dedicated EV Financing Fund: Establishing a special fund under SIDBI (Small Industries Development Bank of India) or NABARD (National Bank for Agriculture and Rural Development) to provide funding for NBFCs to offer EV loans.
  • Subsidized Interest Rates: Introducing interest subvention schemes for EV loans under ₹10 lakh, making financing more affordable for buyers.
  • Incentives for EV Financiers: Similar to how the government promotes EV manufacturing through FAME and PLI, financial incentives should be introduced to encourage lenders to finance EV purchases.

✅ What This Means for India’s EV Ecosystem

If implemented, these measures could significantly boost EV adoption, making financing more accessible and reducing barriers for consumers. With India aiming for a major shift toward sustainable mobility, addressing the financial challenges in the sector will be crucial to accelerating the transition.

Join All India EV Community

More EV News

E-Rickshaw Subsidies
Unused E-Rickshaw Subsidies May Be Reallocated to Cargo Electric 3-Wheelers Under PM E-DRIVE
ChargeZone charges EV Industry with Battery Passport System
EKA Mobility secures LOA for 750 Electric Buses to be deployed Across Andhra Pradesh
Bajaj Finance Gets $400M Boost for EV and Financial Inclusion
Battery Energy Storage Systems (BESS) and India’s Energy Future

Click here for more such EV

Quantum Energy Offers Special Discounts on Electric Scooters
Greaves Finance Partners with Eqaro Surety to Enhance EV Financing for Electric Two-Wheelers
Delhi’s EV Ambitions Stumble: A Sharp Decline Amidst Policy Uncertainty
Tesla Strategic Move into India: A $2-$3 Billion Investment in Local EV Production
Honda’s Electric Revolution: Two New Models, Ambitious Production Targets, and Strategic Expansion

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
Loading
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share This Article
Facebook Whatsapp Whatsapp LinkedIn Copy Link Print
Leave a Comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow US
XFollow
InstagramFollow
YoutubeSubscribe
LinkedInFollow
Waste Batteries
Why India Must Treat Waste Batteries Like the Oil Reserves of the Future
22 October 2025
Honda
Honda to Boost Electric Two-Wheeler Strategy in India with Cost Efficiencies and New EV Plant by 2028
22 October 2025
E-Buses
Only 12 States, UTs Commit to Payment Security Mechanism for Faster E-Bus Deployment
21 October 2025
All India EV: Sept-25
Everything that is happening in the INdian Ev marekt compiled in one publication just for you,,,
All India EV

Daily EV Industry updates for you…

Categories

  • EV News
  • EV Launch
  • Investments & Funding
  • Market Insights
  • Guest Articles
  • EV Engineering

Quick Links

  • Content Services
  • Branding Services
  • My EV Charger
  • Substack

© Developed and Managed by “The Energy Log”

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?

Not a member? Sign Up