NBFCs are emerging as the financial backbone of India’s EV push. Their agility, green funding access, and innovative loan models can accelerate adoption—if they adapt to new risks and liquidity pressures.
Key Points
- EV financing market projected to grow from USD 2.37B (2025) to USD 19.97B (2030).
- NBFCs already contribute 47.5% of EV financing in India.
- Credit growth for NBFCs slowed to 3.6% YoY, tightening liquidity.
- EVs demand new lending models due to battery-heavy costs and uncertain resale values.
- Early movers: Dugar Finance (green bonds), Mufin Green Finance (split loans), Tata Motors Finance (battery leasing).
- What works: OEM tie-ups, flexible EMIs, green capital inflows.
- What’s hard: battery valuation, residual risk, secondary market gaps, liquidity strain.
- Regulatory push: RBI’s green-friendly risk-weight proposals; FIDC as NBFC SRO.
- The future: EV-specific lending divisions, stronger battery markets, OEM–NBFC embedded finance.
