ENA Sectors 2025-07-18 17:55:10 <p><span style="font-size:14px"><strong>New Delhi, Jul 18 (KNN) </strong>A surge of startups and financial institutions is reshaping how electric commercial vehicles (EVs) are financed in India, particularly for small fleet operators and independent drivers who often lack formal credit histories. </span></p> <p><span style="font-size:14px">Traditionally viewed as high-risk by mainstream lenders, the commercial EV segment is now opening up thanks to tailored funding solutions.</span></p> <p><span style="font-size:14px">One standout innovation is the battery‑chassis separation model pioneered by firms like VidyutTech.</span></p> <p><span style="font-size:14px">Customers pay a fixed EMI for the vehicles chassis, while the battery is charged on a per‑kilometre basis&mdash;mimicking fuel costs and significantly reducing upfront expenses. </span></p> <p><span style="font-size:14px">Other options gaining traction include battery subscription services and Battery-as-a-Service (BaaS) frameworks that also decouple ownership of the expensive battery component from the vehicle itself.</span></p> <p><span style="font-size:14px">To support these models, NBFCs such as Mufin Green Finance have emerged with dedicated EV loan books&mdash;allocating over Rs 800 crore into battery-only lending, backed by innovative first-loss guarantee (FLDG) arrangements that absorb part of the default risk and attract lenders toward non-traditional profiles.</span></p> <p><span style="font-size:14px">Complementing these startup-driven solutions, experts advocate for government-backed risk‑sharing schemes, such as credit guarantee programs or priority‑sector lending classification.</span></p> <p><span style="font-size:14px">These public‑private structures could allow longer tenures and higher loan‑to‑value ratios, thereby lowering the borrowers monthly burden and stimulating scale in last‑mile delivery and gig‑based mobility sectors.</span></p> <p><span style="font-size:14px">Collectively, these models are bridging affordability and risk gaps&mdash;offering flexible financing aligned with cash flows, usage patterns, and vehicle economics.</span></p> <p><span style="font-size:14px">As they mature further, they hold the potential to significantly expand access to commercial EVs across India, accelerating the nation's shift toward cleaner, sustainable transportation.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 42864 https://knnindia.co.in/news/newsdetails/sectors/innovative-financing-models-boosting-ev-adoption 2025-07-18 17:55:10 knnindia.co.in