New Delhi: In 2030, the Indian electric vehicle financing industry is expected to be worth Rs 3,70,000 crore. This was stated in a report released by NITI Aayog and Rocky Mountain Institute India titled Mobilizing Electric Vehicle Financing in India. The importance of finance in India’s transition to electric vehicles is highlighted in the report.
According to the NITI Aayog, India’s electric vehicle ecosystem has focused on overcoming adoption barriers such as technology cost, infrastructure availability, and consumer behavior. Financing is the next crucial obstacle to overcome in order to accelerate India’s electric mobility transition, according to the report.
According to the report, over the next decade, electric vehicles, charging networks, and batteries would require a total capital expenditure of over 19 lakh crore rupees.
In addition, the report proposes a toolkit of ten solutions for catalyzing the necessary resources. Priority-sector financing and interest-rate subsidies, stronger collaborations between Original Equipment Manufacturers and financial institutions, and an established and formal secondary market to increase the resale value of electric vehicles are among the solutions suggested in the report.
