SRINIVAS KANTHETI, CO-FOUNDER and MD of Bike Bazaar,spoke to Autocar Professional on how the electric vehicles are on a cusp of takeoff and how financing can play a critical role in accelerating this shift. Srinivas - who understands the two-wheeler financing better than most - thanks to his experience of working in the two-wheeler market for several decades, shares his insight on the prospects and challenges faced by the industry and how his firm aims to capitalise on this market transformation.
Your thoughts on transition to EVs
The direction is clear, the shift towards EVs in two wheelers and three wheelers is going to be significant. This year the penetration is at 4 percent but, it is growing fast, and the estimates are getting revised upwards. As against the penetration of 30 percent by the end of decade the same is likely to happen by FY-26 and may touch 65 percent by end of this decade.
What are the challenges and how can they be overcome?
Financing remains the biggest challenge, other than the fact that battery and battery technologies are still evolving.
Two-wheelers financing is not only dependent on the customer but also on the product. The product profile has changed a lot. With resale values and battery life remaining uncertain, traditional financers find it risky to finance these products.
In case of ICE, if the customer is not able to repay, a financer can re-possess the product and recover part of the dues in the secondhand market, which is challenging for EVs at present. Secondly, unlike an ICE buyer who largely is an individual, EVs are being aggregated by logistic company and last mile mobility providers, thereby needing different underwriting norms.
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