L&T Finance, a non-banking financial company (NBFC) with a two-wheeler finance business book size of Rs 9,190 crore as of the quarter ending June 2023, has announced a strategic partnership with Ather Energy.
Under this partnership, L&T Finance will facilitate up to 100% financing of the loan-to-value of Ather Energy’s electric vehicles (EVs) for its customers. The loan amount will be based on the on-road price, encompassing the ex-showroom cost, regional transport office (RTO) charges, and vehicle insurance, and will be determined according to the customer’s credit profile.
Sanjay Garyali, Chief Executive – Urban Finance, L&T Finance, said, “For the Indian two-wheeler segment, we expect strong growth across the industry. This growth is expected to be fuelled by improved purchasing power, increased dependence on personal mobility for millennials, and shifting preference towards vehicles powered by technology and artificial intelligence.”
“Considering these aspects, it won’t be surprising to see the penetration of vehicle financing in India, which currently stands at around 60% and grow to 75% in the next few years,” Garyali added.
Ravneet Phokela, Chief Business Officer, Ather Energy said, “Ather has since inception, focused on building strong partnerships with banks, NBFCs etc to introduce lucrative EV financing for our users. In fact today, more than 50% of Ather’s customers opt for vehicle financing as their preferred mode of purchasing our scooters.”