Greaves Cotton’s EV financing arm targets half a million financed EVs over next five years

Evfin, the lending subsidiary of Greaves Cotton, plans to achieve a portfolio of 500,000 financed electric two-wheelers over the next five years, a significant increase from its current base of approximately 12,000 units.

This expansion aligns with India's broader push toward cleaner transportation solutions, with evfin aiming to serve up to 80% of the EV two-wheeler financing market by establishing a presence in 150–160 cities, up from 42 cities today.

The timing appears favorable, with the EV market in India rapidly expanding. Currently, electric vehicles constitute around 8% of all two-wheeler sales, a figure expected to rise as infrastructure and consumer acceptance improve.

Expanding services and product innovation
According to P. B. Sunil Kumar, CEO of Greaves Finance, evfin’s strategy emphasizes a comprehensive service offering that differentiates it from competitors, including banks and traditional non-banking financial companies (NBFCs). Since its launch in 2019, evfin is transitioning from a financing platform and building a market place that will includes insurance, after-sales services, access to charging stations etc.

To address consumer apprehensions regarding EV ownership, evfin introduced several financing products, including SmartFin and RightFin, which offer buyback options for customers concerned about resale value, as well as zipFin for short-term, low-interest loans, and EcoFin as a standard financing option. Kumar noted that these products provide flexibility and financial security for customers, aiming to build trust and drive EV adoption.

Digital efficiency and market reach
Evfin’s streamlined digital financing model is central to its growth plan. The platform enables loan approvals in as little as 2.5 minutes, with loan disbursements following within 4–5 hours. Kumar highlighted the role of speed in attracting customers, noting, "The faster turnaround is the key." Rebranded in 2023, evfin has disbursed loans worth over Rs 100 crore and currently manages assets exceeding Rs 150 crore.

The platform’s growth is also supported by partnerships with leading EV manufacturers, including Ather Energy, Greaves’ own Ampere, Hero Motocorp’s Vida, OLA Electric, Bajaj Chetak, River Mobility, and TVS iQube, covering nearly 90% of India’s EV two-wheeler market.

Maintaining competitive advantage through credit quality and cost efficiency
Evfin maintains a “bounce rate” (or missed payment rate) of less than 5%, well below the industry average of around 15%, enhancing its attractiveness for cautious investors. Additionally, evfin’s lending rate, with an internal rate of return (IRR) of approximately 16.7%, is lower than the industry average of 19–21%– a factor that helps attract price-sensitive customers without sacrificing credit quality.

Building partnerships to broaden financing access
As part of its growth strategy, evfin is enhancing its financial partnerships to act as a financing hub for the EV sector. Through collaborations with other NBFCs and banks, the platform allows for diverse funding options, provided customers’ consent. This model could increase the availability of EV financing, contributing to India’s EV adoption efforts by making financing more accessible.

Positioned for sustainable growth
Evfin’s growth strategy—marked by product innovation, strategic partnerships, and a focus on customer-centricity, is positioning it to play a strong role in India's evolving EV financing landscape. However, the path may not be smooth and be full of challenges; although the opportunity size seems huge to take the stride.