Electric Vehicles (EVs) are believed to be the most viable solution for reducing the carbon footprint and dependency on fossil fuel across the globe and rightly so. In recent years, India has witnessed a slew of EV launches ranging from scooters to SUVs by both automobile giants as well as innovative startups
According to the Society of Manufacturers of Electric Vehicles (SMEV), the registered association that represents the manufacturers of electric vehicles in India, the sale of electric vehicles in India is expected to touch a million units in the current year.
This is nearly a five fold growth as compared to the sales figure of EVs in 2021 which stood at 2,33,971. Citing an encouraging response from the consumers, the government of India has also made a three fold hike in the budget for subsidy under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme for the fiscal year 2023.
UPFRONT FINANCIAL CHALLENGES FOR THE EV INDUSTRY
Despite the optimistic numbers, EVs are still not mainstream in India owing to numerous bottlenecks.
According to Sohinder S. Gill, Director-General of Society of Manufacturers of Electric Vehicles (SMEV), only 9 percent of EV two-wheelers get financed in India. This can be attributed to the nascency of EV technology and adoption which are preventing banks and non-banking financial companies (NBFC) from lending owing asset and business model risks.
HOW FINAYO IS ADDRESSING THE PERSISTING FINANCIAL CHALLENGES
FINAYO’s cutting edge platform harnesses Machine Learning and Artificial Intelligence for evaluating customer risk and asset assessment including the shelf life of parts in real-time and instilling confidence in lenders for offering loans for EVs.The SaaS-based platform also offers customised loans as per the profile of an individual, enabling the potential customer with multiple options to choose from.
FINAYO’s disruptive AI-powered platforms including Asset Business Rule Engine and Lender Business Rule Engine enable the OEMs and lenders to furnish compelling loan offers to consumers for a convenient buying experience
FI-MEN
The revolutionary FI-MEN solution by FINAYO allows a potential EV buyer to benefit from a host of loan offers in real-time for his preferred electric vehicle with just the scan of a QR code. FINAYO has collaborated with multiple EV showrooms in this regard and the consumers can avail of the loan offers after filling in loan-specific details.
The solution is a testament to FINAYO’s objective to mitigate the challenges associated with lending in the EV sector.
Another key advantage of FINAYO’s platform includes enhanced customer acquisition for both the lenders and EV manufacturers as it bridges the gap between the financial institutions and EV buyers who are eyeing a financing option in real-time.
The country’s apex policy think tank, NITI Aayog has planned to establish a US$ 300 million first-loss-risk sharing instrument along with the World Bank. The instrument will serve as a guaranteeing mechanism for banks and NBFCs in the event of payment delays on EV loans.
In such a scenario cutting edge SaaS-based platforms like FINAYO will play an active role in enabling the consumers with hassle-free, instant financing options in a matter of minutes.
Commenting on FINAYO’s commitment to propel the adoption of EVs in the country, Brajendra Singh Tomar said, ‘’After comprehensive research in the EV financing space, FINAYO’s proficient team identified the key challenges lurking in the domain and harnessed cutting-edge AI-powered technologies to develop FI-MEN. The industry-leading FI-MEN solution boasts India’s first Asset Business Rule Engine for OEMs and Lender Business Rule Engine for banks and NBFCs to furnish competitive loan offers to prospective EV buyers conveniently and swiftly.’’
‘’Our team at FINAYO is committed to investing in state of the art technologies to ease the lending process for EVs and contribute to the ambitious initiative of the Government of India to become a 100 percent EV nation by 2030,’’ added Tomar.