Bengaluru: Electric vehicle adoption in India is growing by the month according to recent sales figures but a lack of liquidity in the market for this nascent industry is causing roadblocks in larger accessibility. EVs are already higher priced than internal combustion engine (ICE) vehicles due to non-localisation of the battery supply chains, which make up for almost half of an EV’s cost. Added to that mix is the absence of a resale market and limited understanding of the technology, leading to banks and non-banking financial companies (NBFC) steering clear of the sector or charging higher interest rates. In the absence of traditional lenders, a market for EV financing startups is forming, faced with its own unique challenges.
