Battery-backed loans are emerging as a powerful new asset class in India. With EV growth, battery swapping, and recycling markets, NBFCs can unlock faster, safer, and greener lending opportunities.
Key Points Covered
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Batteries now account for 40–50% of EV cost, making them a core financeable asset
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1.7+ million EV registrations in FY25 are expanding the battery asset base
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Battery swapping market expected to reach USD 6 billion by 2030
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Strong second-life and recycling value reduces lender risk
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Growing demand for grid-scale battery storage creates new financing avenues
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NBFCs adopting split financing, BaaS, and usage-linked repayment models
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Real-time BMS and telematics data enables smarter underwriting
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Short tenures, high utilisation, and measurable recovery improve unit economics
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Government EV targets and ESG capital are accelerating adoption
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Early-mover NBFCs can shape India’s next major lending category
