Electric vehicle financier RevFin is looking at disbursing Rs 40,000 crore in loans to buy two-, three- and four-wheelers deployed for commercial use over the next five years. The company expects strong demand for loans, driven by high fuel prices, incentives rolled out by the central and state governments and renewed emphasis by ecommerce companies to electrify their last-mile delivery fleets.
Sameer Aggarwal, founder of RevFin which has been financing purchase of electric vehicles since 2018, said in the last six to nine months, the market had recognised the need to move to EVs due to their substantially lower running costs. With EV acquisition costs set to come at par with internal combustion engine vehicles in the next two-three years, the market for electric vehicles for commercial use is expected to grow to $150 billion by the end of the decade, he said, citing industry studies.
“Over the next five years, we are targeting disbursing loans of Rs 40,000 crore for 1.7 million electric vehicles used for commercial purposes,” said Aggarwal.
RevFin is projecting loan disbursals of Rs 450 crore in the next fiscal year starting April 1, compared with Rs 120-200 crore this FY. It expects disbursals of Rs 2,200 crore in FY24, Rs 5,500 crore in FY25, Rs 11,500 crore in FY26 and Rs 20,000 crore in FY27.
It will start financing two-wheelers for commercial use from next month, Aggarwal said. Loan disbursals for four-wheelers used for cargo transport as well as ride-sharing will commence in the latter half of the year.
RevFin plans to expand operations to 10 more states, taking its presence to 25-30 states by the end of calendar year 2022.
Aggarwal said: “About 10% of the market for three-wheelers is currently electric. We expect this penetration to increase to 70-90% in the next 3-4 years. In the commercial two-wheeler and four-wheeler space also, 70-80% of the market should go electric mid-term.”
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