Residual value and depreciation challenges in EV financing

India’s success with electric vehicles, mainly two and three-wheelers, showcases the perceptible acceptance of EVs among automobile connoisseurs. While average buyers are driven more by the cost-to-return ratio of the product, climate consciousness has been the major focal point in EV acceleration, with consumers weighing the environmental damage before buying vehicles that run on traditional fossil fuels.

Undoubtedly, the EV sector is on the cusp of growth, experiencing strong tailwinds from favourable government schemes and significant investments across the market. However, there is a pivotal piece of this value chain that has been really slow in catching up with EV Financing.