Ather Energy, an electric scooter manufacturer, has introduced a new 60-month vehicle loan product to enhance the affordability of electric scooters. The company has partnered with IDFC First, Bajaj Finance, and Hero FinCorp for this initiative. This marks the first instance of a 5-year finance product being offered in the EV industry.
Traditionally, banks and NBFCs have limited loan tenures to 36 months, or occasionally 48 months. Ather’s 5-year vehicle loan allows for monthly repayments as low as INR 2,999, making it an attractive financial option for electric two-wheeler buyers in India.
Ravneet S. Phokela, Chief Business Officer of Ather Energy, emphasized the significance of affordable vehicle loan products in driving the growth of the Indian two-wheeler market. With the increasing popularity of EV scooters, there is a need for longer-tenured loan products. Ather aims to make its scooters accessible to a wider audience and accelerate EV adoption by offering this extended loan period.
Ather’s collaboration with leading retail finance players, banks, and NBFCs has resulted in the creation of India’s first 60-month EV loan product, paving the way for other OEMs to follow suit. The company believes that this extended loan period will make EVs more appealing and attract more customers.
Ather anticipates that other two-wheeler brands, particularly in the EV market, will also introduce similar 60-month loan products for their customers. The Indian retail finance industry, which plays a crucial role in the success of the automobile market, particularly the two-wheeler segment, is highlighted by the fact that three out of every four two-wheelers sold in India are financed.
Ather has witnessed an increase in the number of customers opting for loans since November 2022, and with the segment’s projected growth, attractive EV financing schemes will be vital for the industry’s future expansion.