Sameer Aggarwal, founder of RevFin, which has funded the purchase of electric vehicles since 2018, said that over the past 6-9 months, the market has recognized the need to switch to electric vehicles.
Central and state governments announced incentives that made electric vehicles much more affordable, while with low interest rates IMEs got smaller. âIn July and August alone, demand has tripled compared to pre-pandemic years. We forecast a 15-fold increase in demand over the next six months (compared to the pre-pandemic period), âsaid Aggarwal, who is also the company’s chief executive.
As the government aggressively encourages the use of electric mobility to reduce crude oil imports and vehicle pollution, major e-commerce companies have started to consider electrifying their delivery fleets and are placing orders for new products.
âThe momentum is already there, a significant scale will occur in the next 9 to 12 months,â Aggarwal said. He estimates that the Indian commercial electric vehicle market will reach $ 15-20 billion over the next five years. The market is currently negligible.
The economy alone will propel the trend towards electric vehicles – the running cost per km for an electric vehicle for commercial use is almost a quarter of the current Rs 4 per km for a gasoline or diesel vehicle, Aggarwal said. . âThere is already a sharp increase in demand for electric vehicles for commercial use in Delhi, Madhya Pradesh, Odisha, Jharkhand, Uttar Pradesh, Uttarakhand, Punjab and Haryana. ”
Earlier this month, Niti Aayog CEO Amitabh Kant told ET that over the next two years all urban delivery vehicles need to go completely green. The government think tank already has 30 companies, including Mahindra Electric, Tata Motors, Zomato, Sun Mobility, Lightning Logistics, BigBasket, Blue Dart, Hero Electric and Swiggy for the recently launched Shoonya initiative.
The objective of the initiative is to facilitate a faster transition to green technologies in the urban delivery segment in order to reduce emissions, and simultaneously exploit the volumes to enable the establishment of a charging infrastructure. and a sales base for electric vehicles.
Given the rapid growth of e-commerce – now accelerated by the pandemic – up to 8 million vehicles are expected to be on the road in the urban delivery segment by 2030, a study available from the government body shows. . If India were to fully electrify its urban delivery fleet, the country’s electric vehicle finance industry would be worth Rs 3.7 lakh crore at the time.
To tap the potential demand, RevFin plans to raise $ 40 million in the current fiscal year. The resources, which will be raised through a combination of equity and debt, would help sustain operations over the next 12-18 months, Aggarwal said. RevFin aims to disburse Rs 200 crore in loans by fiscal year 2022. It aims to finance more than 80,000 electric vehicles over the next three years.
Revfin has disbursed 2,100 loans worth Rs 21 crore so far with a record 95% repayment.