HDFC Bank has launched a flexi green electric car loan offering differential loan proportions for the body and battery of Electric Vehicles. According to reports from The Hindu BusinessLine, the bank's statement highlighted that the battery loan can be repaid over a longer term, providing flexibility to customise EMI outflow with differential loan tenor and curated outflow options. This innovative approach addresses the high acquisition costs of EVs compared to Internal Combustion Engine vehicles, where batteries are the most expensive component.
The bank's approach ensures the EMI portion for the battery will be comparable with the running cost of an ICE vehicle. As reported by The Hindu BusinessLine, this strategy aligns with evolving battery subscription models that are making EV ownership more accessible and cost-effective. The extended battery repayment period allows customers to manage their financial commitments more efficiently while embracing the EV revolution in India.
According to HDFC Bank's assessment, India is expected to see exponential growth in EV adoption, with the share of passenger cars in the EV segment expected to touch 15-20 per cent by 2030 from the current 7 per cent. As reported by The Hindu BusinessLine, this growth trajectory is supported by Government's mission for 30 per cent electric mobility by 2030, coupled with improved battery technology and expansion in product portfolios by OEMs. The bank believes this loan product will play a pivotal role in making EV ownership cost-effective, seamless and hassle-free.
Arvind Vohra, Group Head – Retail Assets & Rural Banking at HDFC Bank, emphasized that the EV revolution in India is fast gaining momentum, supported by government incentives, push for improved technological landscape and judicious policies. According to The Hindu BusinessLine, Vohra stated that India is set to embrace the EV revolution, with the bank's flexi electric car loan being one more step in that direction. The initiative aligns with the broader transformation in India's automotive sector toward electric mobility solutions.
