The Small Industries Development Bank of India (SIDBI) has launched a pilot financing scheme called Mission 50K-EV4ECO to fund the purchase of 50,000 electric vehicles (EVs) in the country. The scheme will offer attractive financing terms for the sale of two-wheeler, three-wheeler, and four-wheeler EVs through direct and indirect lending to micro, small and medium enterprises (MSMEs) and non-banking financing companies (NBFCs). Under direct lending, SIDBI will directly offer loans to eligible MSMEs, including aggregators, fleet operators and EV leasing companies, to buy EVs and develop local charging infrastructure.
Indirect lending will focus on small, unrated, and emerging NBFCs working actively in the EV financing domain by increasing exposure to funds and reducing landing costs for such players. The move is in line with the Indian government’s larger focus on the EV30@30 initiative, which targets reaching a 30% sales share for electric vehicles by 2030. The increasing demand for electric vehicles has led to the emergence of various financing platforms that cater specifically to EVs. These platforms offer financing options to businesses and SMEs looking to purchase EVs. With more and more investors recognizing the potential in the EV financing space, many of these platforms have been able to secure significant investments to further expand their operations. This is a positive development for the EV industry as increased financing options make it easier for businesses and individuals to adopt EVs, which in turn helps to reduce carbon emissions and promote sustainability.