New Delhi: A group of financiers of electric vehicles launched on Wednesday Electric Mobility Financiers Association of India (EMFAI). It will act as a common platform for all the financial institutions involved in financing electric vehicles and other products and services relevant to the ecosystem. The mission of the association is to enable fast adoption of electric mobility, shape policies and guidelines, and mitigate risks associated with electric mobility, Revfin Services Private Limited, a digital consumer lending platform that provides loans for electric vehicles, said in a media release.
Access to capital is one of the largest constraints for large-scale adoption of electric vehicles in India. Members of EMFAI are committed to providing this access not only for electric vehicles, but also for associated infrastructure and ancillary products. Some of the members of the association include Revfin, Mufin Green Finance, Akasa Finance, Prest Loans, Vedika Fincorp and Grip Invest, the release said.
Sameer Aggarwal, founder and CEO of RevFin, who will serve as the founding president of the association, said, “Members of EMFAI have jointly financed over 100,000 electric vehicles, disbursing over INR 1000 crore in loans and leases to individual drivers and fleet operators. It is our endeavour to ensure that electric vehicles become mainstream, thereby helping India to achieve its carbon targets.”
Rohit Mehta, managing director, Akasa Finance, one of the pioneers of electric vehicle financing in India, will be the vice president of the association. “India’s EV adoption rate is moving slowly primarily because they are not priced at par with ICE vehicles and come at a premium. It influences the purchase decision of buyers. We aim to facilitate fast adoption of electric mobility in India through this association by establishing a partnership. This will also help promote and encourage electric mobility financing and will lessen the risk associated, Mehta said.
India has set a goal to achieve EV sales accounting for 30% of private cars, 70% of commercial vehicles, and 80% of two and three-wheelers by 2030. In a country that is still heavily dependent on coal, stringent steps have to be taken to achieve these ambitious targets. The new association intends to emerge as a significant benefactor in achieving India’s higher EV adoption target, the release added.
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