Indian government plans electric vehicles financing industry

News  /   July

New Delhi

The Union Government of India is planning to set up institutions to fund EV businesses for making electric vehicle business in India more lucrative. Union Minister Nitin Gadkari, who was addressing the India Global Forum 2021 said that the government aims to help provide loans to the public transport and commercial vehicle segment and is also planning to encourage construction equipment vehicles to go electric and promises to incentivise them. The government is giving highest priority for electric vehicles adoption in India as the electric vehicles sector has been growing rapidly. 

He added that, the government is trying to bring down the cost of electric vehicles in the country to make it more affordable for the masses as there is huge domestic demand for electric vehicles, many start-ups have started producing them and India's research institutions are working on an alternative battery technology for electric vehicles.

According to the Union Minister, India currently has around 69,000 petrol pumps where electric vehicle charging facility is available and in coming days, India will also use solar energy to charge batteries of electric vehicles.

India's electric vehicle financing industry is likely to be worth Rs 3.7 trillion by the end of the decade, according to a recent report by Niti Aayog. The amount is almost 80% of the current retail vehicle finance industry. The report had also said that end-users currently face several challenges such as high interest rates, insurance rates and low loan-to-value ratios. 

Source: HT Auto

Image Source: Google Images

Also Read:

https://www.automotiveproductsfinder.com/news/time-is-perfect-to-introduce-vehicle-scrappage-policy--ey-report/134711

https://www.automotiveproductsfinder.com/news/india-gets-asia-s-longest-high-speed-track-for-automobiles/134713

 

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