While addressing the India Global Forum 2021, Union minister Nitin Gadkari said that the government is planning to set up an institution to fund businesses with a focus on electric vehicles as well as facilitate new financial instruments for lending to the public transportation and commercial vehicle segment.
He also mentioned the government is planning to bring incentives for construction equipment vehicles to encourage them to become electric ones.
As per a recent report titled ‘Mobilising Electric Vehicle Financing in India’, prepared by Niti Aayog and Rocky Mountain Institute (RMI), India’s electric vehicle financing industry is projected to be worth Rs 3.7 lakh crore in 2030, which would be about 80 per cent of the current retail vehicle finance industry. It had also said that end-users currently face several challenges such as high interest rates, high insurance rates, and low loan-to-value ratios.
Mr. Gadkari mentioned – “The government is planning to set up a financial institution to fund business with a focus on electric vehicles and facilitate new financial instruments for lending to the public transportation and commercial vehicle segment. India’s electric vehicles sector has been growing rapidly. The government is supporting domestic electric vehicle manufacturers. We have huge domestic demand for electric vehicles. Many startups have started producing electric vehicles”
Mr. Gadkari also pointed out that battery cost is 50 percent of an electric vehicle and India’s research institutions are working on an alternative battery technology for such vehicles. For the same, he said that we will use solar energy for charging batteries of electric vehicles.