Manappuram Finance Ltd (MAFIL) is planning to join hands with auto manufacturers to provide financing solutions for electric vehicles, said Dhiraj Agarwal, Sr. Vice President and CEO, EV business at the company, in an interview to EVReporter.com.
Presently, the non-banking financial company (NBFC) is offering financing solutions for 9,000 EVs across India. With the tie-ups with auto manufacturers, the company is aiming to expand its footprint in EV financing further.
As Agarwal pointed, Manappuram Finance is especially focusing on the electric three-wheelers for its goal of EV financing. The electric three-wheelers and two-wheelers are two segments growing faster in the Indian EV market, compared to the passenger vehicles and other segments.
The e-rickshaws especially have grown rapidly in the last couple of years, providing the zero-emission last-mile mobility solutions across the country. During the 2018-19 period, electric three-wheelers sold around 6.30 lakh units, as compared to 5.20 lakh units recorded in 2017-18 period, marking an annual growth of 21%.
According to the research agency CRISIL, half the three-wheelers sold in India by 2024 will be EVs, and the majority of them will be e-rickshaws. Considering this, Manappuram Finance wants to tap into the e-rickshaw segment. As the company claims, it is interested in collaborating with automakers that produce 400-500 units of e-rickshaws every month.
Presently, there are not much NBFCs that offer EV financing. The number of companies that offer the financing solutions for electric vehicles has very high Internal Rate of Return (IRR), claims the CEO of Manppuram Finance. It also says that the company is focusing on providing affordable EMIs to the stakeholders for EVs. To make it easier for the consumers, the NBFC is claimed to have implemented weekly EMI payment options.