Mahindra Last Mile Mobility and Ecofy partner to finance 10,000 electric three-wheelers

Ecofy, India’s green-only NBFC backed by Eversource Capital, committed to financing India’s green transition, today announced a strategic partnership with Mahindra Last Mile Mobility Ltd (MLMML), a subsidiary of Mahindra & Mahindra.

The partnership is expected to boost the adoption of electric three-wheelers in India. MLMML is India’s leading electric three-wheeler manufacturer and offers the widest range of electric three-wheelers. The collaboration aims to provide impetus to the growing EV 3W demand by combining Mahindra's expertise in electric vehicle manufacturing with Ecofy's innovative financing solutions.

Commenting on the tie-up, Rajashree Nambiar, co-founder, MD and CEO of Ecofy, said: "This partnership with Mahindra LMML perfectly aligns with our mission to promote sustainable transportation solutions. Together, we will accelerate the adoption of electric three-wheelers, contributing directly to India's target of achieving 30% EV penetration by 2030. The collaboration brings substantial benefits to both companies. Through this partnership, Ecofy now caters to 85% of industry demand and is already offering financing, leasing and subscription models.”

Suman Mishra, MD and CEO of MLMML, said, “Our partnership marks a significant stride in accelerating the adoption of electric three-wheelers in India. This tie-up will help bring tailored finance solutions to our customers and bring them closer to their micro-entrepreneurial journey. Together with Ecofy, we are committed to making green mobility accessible and affordable for all.”

The global market for electric three-wheelers, valued at approximately USD 677 Million in 2020, is expected to grow at a CAGR of around 10% from 2021 to 2027. With robust government incentives and subsidies promoting electric mobility, this partnership signifies a crucial advancement towards a greener, more sustainable future for India's transportation industry.

Ecofy, which partners with individuals and small businesses who want to reduce their carbon footprint, offers loans for electric two- and three-wheelers, rooftop solar, and small-medium enterprises providing E2E digital experience.

Mahindra Last Mile Mobility headed for record e3W sales in 2024
Of the 500 players in the fray, Mahindra Last Mile Mobility continues to be unassailable market leader. In the first six months of CY2024, the company has sold a total of 29,649 units, which makes for a YoY increase of 28% (January-June 2024: 23,214 units).

This gives it a 9.44% share of the e-three-wheeler market and positions it comfortably ahead of the competition. The company has averaged monthly sales of 4,941 units, surpassing the 4,500 sales mark in five of the past six months.

MLLM, which sold a total of 54,599 units in CY2023, has already achieved 54% of that in first-half 2024, and is headed for record sales this year.

MLMM, whose portfolio includes the Treo, Treo Plus, Treo Zor, Treo Yaari, Zor Grand, e-Alfa Super and e-Alfa Cargo catering to multiple mobility operations, continues to gain from growing demand for its Treo Plus and e-Alfa Super passenger and cargo variants. To ensure sustained supplies to meet growing demand for its portfolio, MLMM has tripled its production capacity, leveraging its manufacturing plants in Bengaluru, Haridwar, and Zaheerabad.

ALSO READ: EV sales at 842,000 units in H1 2024 grow 16% but June numbers lowest in 12 months