Data Emerges as the New Colateral to Fix EV Lending

Omega Seiki Mobility has partnered with Electra AI to solve the electric vehicle industry's biggest financing barrier: predicting what pre-owned EVs will be worth. The partnership integrates predictive battery analytics directly into loan underwriting workflows.

Ashhar Idris, Vice President at Omega Seiki Mobility, framed the issue during an auto lending conference in Mumbai on 19th August. He noted that when a buyer requests a vehicle valuation, the main uncertainty for lenders is the battery's remaining value after three years on the road.

That lack of residual clarity translates into steep losses when borrowers default. Dhiraj Agrawal, Head of Sales & Marketing at Allfine Industries, highlighted the scale of those write-downs on three-wheelers. "On a vehicle with Rs 3.5 lakh in outstanding credit, repossessed units sitting in storage yards often fetch barely 30,000 to 40,000 rupees," Agrawal said, noting that lenders lose up to Rs 2.5 lakh on every defaulted L5 vehicle.

Infrastructure Deficits and Battery Wear

Sumeru Shah, a vehicle finance expert on the panel, pointed out that physical repossession yards make these losses worse. Storage yards built for petrol and diesel vehicles do not have high-capacity charging setups. When an electric vehicle sits uncharged for more than three weeks, its battery cells suffer permanent damage. Replacing a dead battery before selling the vehicle can cost 30 to 40 percent of the original price.

As a result, non-banking financial companies (NBFCs) are pulling back on loan approvals because they cannot value the asset accurately. Omega Seiki and Electra AI are addressing this by building automated State of Health and Remaining Useful Life scores for commercial fleets, backed by an eight-year battery warranty. Idris stressed that software data will become the primary collateral for future EV loans.

Data from CRIF High Mark's latest report shows that premium and electric two-wheelers priced over Rs 1 lakh now account for 43 percent of all two-wheeler loan values. Establishing reliable battery health checks remains the key to opening up a functioning secondary EV market.