The Society for Manufacturers of Electric Vehicles estimates that there are over 1.5 lakh electric 3-wheelers on Indian roads. Studies also reveal that at a CAGR of 9% this sector will touch $5 billion by 2025. This growth rate can reach 10-20 times its current rate with active involvement of the FinTech sector. The FinTech sector is playing a crucial role especially in the promotion of the 2 and 3-wheeler EV segment.
Adoption of EVs is an uphill task as the standard buyer is usually from the rural area with limited resources and with little or no educational background. More than often, the buyer may not be digitally savvy with no credit history. This deviation to the rural areas is more evident after the pandemic. These areas are seeing a spurt in hyperlocal deliveries due to the growing dependence on e-commerce. The demand for electric 3-wheelers as a feasible option for last-mile deliveries is spiraling.
Here is how FinTech startups are stepping in to offer solutions that facilitate easy transition and support the growing demand.
Fintech solutions for the EV industry
Buy Back : Up to 1.5 Lakh buyback after 3 years ( Financers to lenders )
Down Payment : Lowest down payment @ 49999.( Financers to lenders )
Flexible Ownership : Finding the right vehicle & offering financing solutions best suited for your needs. ( Financers to lenders)
Battery Replacement : Up to 100% LTV financing for replacement batteries starting as low as 0% ROI
Battery Subscription : Offers Facility aims to lower the upfront cost of EV by investing in batteries and providing customers as a subscription, to be charged on daily or per kilometer basis.
Guaranteed Resale : Offer guaranteed buyback for vehicles purchased through the same financier.
Lifecycle Management : EV tailored platform makes owning an electric vehicle simple & stress free. Offering end-to-end solutions for purchase, financing to resale which provide superior economics on electric vehicles compared to petrol & diesel vehicles.
EV Loan : Financial offering to L3 & L5 segment - commercial passenger three-wheeler within rural and semi urban areas
Loan Product : Accessible through flexible EV financing products, which can be used for both passenger and commercial purposes and engenders to be a close-ended credit product.
Fast Turn-Around-Time : Fast credit disbursal and loan approval within 48 hours.
Large scale : Operational in most of the states and will gradually create a presence pan India.
Apart from the above solutions FinTechs offer digital payment solutions to enable easy payment of fares or repay loan installments. Embedded IOT devices aid lenders and insurers track the electric cargos or other e-vehicles and limit the range of vehicles through geofencing thereby protecting against theft and determining driver productivity.
According to the estimates of the International Energy Agency, electric vehicles will account for 55% of sales of cars and 33% of the worldwide fleet by 2040. And with the assistance and support of the FinTech start-ups these figures are bound to show an upward trend.