The Indian electric vehicle narrative is evolving rapidly. It is no longer about selling cars and bikes. It is now focused on funding the required infrastructure for the vehicles, including charging stations, batteries, and fleet operations.
This trend is what industry observers describe as EV Financing 2.0. The statistics highlight the significance of this issue.
The Indian EV market reached INR 26,750 crore in 2022. IBEF data projects the Indian EV market to reach INR 9.5 lakh crore by 2029, growing at an annual rate of 66.52%. Such expansion entails a significant investment not only in showrooms but also in the system as a whole.
Old Lending Models Fall Short
The old auto loans were okay for personal cars. However, they are not well-suited to commercial EVs. A delivery fleet operator, or e-rickshaw driver, receives money depending on trips and kilometres. They do not get paid monthly; they are paid daily. That is why lenders are now devising repayment schemes that reflect this fact.
Battery leasing is also picking up. The operators will incur lower upfront costs, and financiers will be better positioned to assess the battery’s life expectancy.
Charging Network Gathers Momentum
By 2022, India had slightly more than 5,000 public charging stations. By July 2025, that number will exceed 26,300, or 72% per year. Commercial EVs just cannot work without this network.
Funding now includes charging facilities, battery storage, and grid upgrades. Previously, these were mere considerations. Nowadays, these elements are central to the EV business.
Big Money on the Horizon
In a joint estimate by NITI Aayog and the Rocky Mountain Institute, the EV financing opportunity in India is estimated at Rs 3.7 lakh crore by 2030. The government aims to ensure 80 million electric vehicles on the road by then, including 30% of regular cars and 70% of commercial vehicles.
Schemes such as FAME II have helped build investor confidence. But the real test lies ahead.
The bottom line? Selling EVs is one thing. Another is keeping them charged, maintained and profitable. The key to the success of India’s green mobility dreams is here.
