Digital Library on Green Mobility

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Banking on electric vehicles in India

A blueprint for inclusion of EVs in priority sector lending guidelines

Publication Year: 2022

Author(s): Singh R, Ghate A, Kulkarni I, Stranger C, Laemel R

Abstract:

The report outlines the importance of priority-sector recognition for retail lending in the electric mobility ecosystem. It provides considerations and recommendations to inform the inclusion of EVs in the Reserve Bank of India’s (RBI’s) priority-sector lending (PSL) guidelines.Banks and non-banking financial companies (NBFCs) in India have the potential to achieve an electric vehicle (EV) financing market size of Rs 40,000 crore (USD 5 billion) by 2025 and Rs 3.7 lakh crore (USD 50 billion) by 2030. However, retail finance for EVs has been slow to pick up. Priority-sector lending aims to expand financial access and support employment opportunities in India. In order to meet these goals, the report highlights that the RBI may consider various EV segments and use cases based on five parameters: socio-economic potential, livelihood generation potential, scalability, techno-economic viability, and stakeholder acceptability.

Country: India

Publisher/Organisation: NITI Aayog, Rocky Mountain Institute (RMI), RMI India

URL:
https://www.niti.gov.in/sites/default/files/2022-01/Banking-on-EV_web_2.0a.pdf

Theme: Business Models | Subtheme: Financing

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