Why HDFC Bank is going big on loans for electric vehicles
The next time you buy an electric vehicle, chances are you may be taking a loan from HDFC Bank.
The lender is going big on EV loans as more and more Indians look to buy an electric vehicle, a report in The Economic Times has said.
HDFC Bank is aiming to treble its lending to electric vehicle (EV) purchases in three years after an early test lending is turning out to be profitable and asset quality remains strong despite some hiccups at the automobile industry level, the report said.
So, how much lending is HDFC Bank looking at making in the EV segment?
After initially testing the waters with lending for 589 EV purchases and a book size of Rs 5,100 crore, the bank aims to triple the book size by 2025, the report said.
How big is the Indian EV market?
Data show 3,800 passenger EVs were sold in October, out of which HDFC Bank financed 589 vehicles. The bank disbursed such loans worth Rs 170 crore in October.
What kind of terms and for what tenors does HDFC Bank typically offer a loan for EV?
According to ET, the bank is offering a loan tenure of eight years with interest rates starting from 8.05%. The average loan ticket size is Rs 17 lakh. Metros and urban locations account for 80% of the demand as access to charging infrastructure remains a roadblock for widespread EV adoption in the country.
How big is the EV infrastructure in India at present?
There are 2,500 EV chargers across 270 cities in India. Almost 500 of these are in Maharashtra.
But how large is the EV market in the country?
Last year, 19,500 electric passenger vehicles were sold in the country. This year, 20,500 vehicles have been sold till October.
Today, the penetration of EV passenger vehicles is below 1% in the automobile space.
How big is the EV financing market in India?
India's EV financing market will likely be worth $50 billion (Rs 4.1 lakh crore) by 2030 when 30% of private cars, 70% of commercial vehicles, and 80% of two- and three-wheelers in the country are expected to use the electric powertrain.
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