All over the world and in India, major automakers have concluded that the future of the automotive industry belongs to electric vehicles (EV). Although a latecomer, the arrival of e-mobility has sparked a transformation in the automotive industry. In addition to having zero tailpipe emissions, electric vehicles have other advantages. They are very convenient to drive and are less expensive to maintain and operate. They also require less maintenance and can be recharged at home.
Despite their obvious benefits, people are hesitant to buy electric vehicles, mainly because of the myths surrounding them. Here’s a look at some of the myths and how they miss the mark.
It is difficult to find a charging station:
One of the main obstacles to the adoption of electric vehicles is the lack of charging infrastructure. According to a survey by Grant Thornton Bharat-FICCI, India would need to have 400,000 charging stations in place by 2026 to meet the demand for two million electric vehicles on the road, Mint reported.
Financing EVs is difficult: Retail financing for electric vehicles in India has been slow to recover. A recent report by government think tank Niti Aayog and Rocky Mountain Institute (RMI) India said there is scope for the country’s banks and non-banking financial firms (NBFCs) to reach a electric vehicles of Rs 40,000 crore by 2025, PTI reported.
Recognizing the need to provide loan facilities for the purchase of electric vehicles, the report highlighted the need to include the facility in the Priority Sector Lending (PSL) guidelines of the Reserve Bank of India (RBI). At present, State Bank of India is offering green car loans to its customers. The bank is offering a 20 basis point interest rate discount over other auto loans to those applying for EV loans.
(Edited by : Thomas Abraham)
First post: STI