With a total population of 1.37 billion, Indian boosts about 15 crore drivers, of which a negligible only one-third of one percent own electric vehicles. For boosting EV adoption rate in the country, the state of financing for electric vehicle purchases requires to be accelerated.
Industry experts estimates that the EV market for two and three wheelers, including commercial and private vehicles is set to grow over USD 10 billion in the next 5 years in India. With the pickup in economic activity, and rising demand of EVs owing to benefits of long-term operational costs, fresh EV-focused retail lending by non-banking financial companies (NBFCs) will play a crucial role for OEMs to cruise into booming EV market and has the potential to achieve an electric vehicle financing market size of Rs 40,000 crore by 2025.
Mr. Amit Kumar, CEO & ED, Benling India Benling India Energy and Technology Limited, a company manufacturing electric two wheelers at Gurugram, today announced its partnership with key NBFCs companies; HDB Financial Services, ICICI Bank and IDFC Bank.
These financing platforms will be offering customers with affordable and transparent credit to purchase Benling India electric scooters to potential end-users across the country. The partnership will offer ease and joy when it comes to affordable financing options and will facilitate the buyers with low-interest credit/ EMI options. These NBFC companies outlines the importance of priority sector recognition for retail lending in the electric mobility ecosystem. Earlier, Benling India partnered with Manappuram Finance Ltd., Bajaj Finserv, LiquiLoans, LoanTap and is giving financing options to customers.
Here, customers can book any Benling electric scooter from the nearest dealer located across 22 States and 160 cities. The customers can complete the KYC formalities and avail the financing options. People without credit cards or a CIBIL score can also apply and avail loan for purchasing the scooter, where they have the option to select EMI tenure of three, six and 12 months for repayments.
The vehicle can be delivered within 1 to 7 days time to the customer compared to financing by other banks which can take up to 6 weeks. By this assessment we are able to approve a higher number of applications. Mr. Amit Kumar, CEO and ED, Benling India who has been making strides in the EV sector comments, “India bought more electric vehicles last year than what was purchased collectively in the past 15 years. We too registered a stunning growth ending the year selling more than 45,000 units. We plan a head to capture 9 percent of market share by penetrating 50 cities in the current fiscal.
The latest partnerships will help us overcome multiple barriers in the E2W financing space (EMI) in a structured manner and establish Benling India as a market-leader in India. Having experienced over 2X growth in last FY, we have built partnerships with major NBFC Players and anticipate financing 70 percent of our electric vehicle models. This move will certainly fast-track the adoption of Benling India EV solutions among the unbanked and underserved individuals in India.
A lot of EVs are being purchased in very small towns (Tier 2, 3 and 4), where there is very limited supply of credit.
While most of these towns are served by banks, not all banks finance E2W. These NBFCs & Financial Institutions have deployed themselves quite efficiently across the country and continue to build deeper roots in the EV financing segment. They are actually aiding and bridging the financing gap for E2W.”
Benling India manufactures electric two wheelers at Manesar, Haryana since 2018 in technical collaboration with Japan’s Zhushi Clubs Limited. The company offers a wide range of colour options and provides its customer 3 years of warranty on battery.
With 100 percent localisation in manufacturing, its high-speed models are all ARAI/ICAT certified. For more information, please visit: www.benlingindia.com.