EXPERTS CALL FOR STANDARDISED CRITERIA IN OEM FINANCING

The Small Industries Development Bank of India (SIDBI), has unveiled six de-risking measures to accelerate India's electric two and three-wheeler adoption to reduce investors' risks in the EV ecosystem and give impetus to financing options for electric two and three-wheelers with the broader goal of accelerating the country's EV adoption at an even faster scale.

- NIVEDITA MUKHERJEE

Taking a deep dive into the deliberations on the EV ecosystem as well as to leverage the Indian experience for replication, the SIDBI's 'de-risking lending for a brisk EV uptake' report under guidance of NITI Aayog and with Rocky Mountain Institute (RMI) as a knowledge partner, was launched at the 'Transforming Transportation 2024' conference in Washington, D.C. and is an outcome of aspirational interaction with 1000+ stakeholders.

The report outlines six derisking measures as solutions for converting challenges or risks into brisk opportunities. It details how two types of de-risking measures can reduce risk and redistribute liability to build EV market confidence and suggests private sector initiatives can mitigate expected losses for financiers, paving the way for favourable EV lending terms.

The report advocates for three fundamental pillars -- risk mitigation through financial products tailored to electric two and threewheelers (e-2/3W), standardised eligibility criteria for OEMs and financiers, and third, institutionalisation of de-risking measures (DRMs).