EV manufacturer Terra Motors recently forayed into EV financing with the launch of Terra Finance and now has partnered with RevFin to provide easily accessible loans to EV drivers in India. Terra Motors has been working on its plans to create a sustainable EV ecosystem through co-creation and this is a big step towards the same. This partnership creates possibilities for better support to daily wage-earners aspiring to be 3 Wheeler EV (3W EVs) drivers in India, enabling them to purchase one on easy finance, while mitigating risk and creating employment and a source of income for them. This will also support the adaptability of EVs in India and the goals of the Indian government to promote electric mobility penetration in Indian markets to fight major social issues like air pollution.
Talking about the partnership, Mr. Sameer Aggarwal, CEO RevFin said “While there are many EV manufacturers in India, a lot of them lack a good understanding of the Industry and lack vision, we always wanted to work with major players in the EV market who has the right vision and approach towards the development of the sector and could encapsulate the government of India’s plans of electrifying the automotive industry. Our goal is to aid the same with our financial services while achieving 15 to 20% of the market share when it comes to EV financing especially in the eastern region. ”
Terra Motors has been a key manufacturer and seller of 3- wheeled EVs for commercial transportation and last-mile delivery targeting low-income groups to help them improve employability and create a source of income especially in economically weaker states like Bihar, UP, Assam, and West Bengal. These states are a major market for their products but the problem arises when it comes to the cost of EVs. Despite government subsidiaries, the technology and product are still inaccessible to a majority of the target group as these are daily wage earners with an average household income as low as 2 lacs per annum, most of which is spent on food and lodging, and EV technology is still a little expensive compared to regular fuel-run vehicles and can be more than 50% of the target group’s annual income, this is one of the reasons for comparatively low adaptability of EVs in these markets. Terra Finance and partnerships like RevFin is a step towards a solution for the same as it will provide flexibility to a buyer to purchase one on easy monthly installments.
Adding to this President and CEO of Terra Motors India, Akihiro Ueda said “ We aim to improve the adaptability of e-vehicles in India not only for personal transportation but also for commercial transportation and last-mile delivery, and by providing an opportunity to low-income groups we can aim to achieve the same by creating employment while promoting e-mobility. It’s hitting two targets with one shot. We have already attained a good sales number (figure) in the last quarter and we aim to keep up the good work, tie-ups like these are very crucial in achieving our goal of creating a sustainable transportation infrastructure as it helps in making EV-technology accessible to a wider market group. This will also help in attaining the Government of India plan to reduce emission intensity by 33- 35% by 2030 by promoting the use of E-Vehicles.”