Piaggio Vehicles Pvt Ltd has partnered with RiseWise Capital to launch a battery replacement financing program for electric three-wheeler operators in India. The initiative provides up to 100% financing for new batteries after three to four years of vehicle use, with repayment terms extending up to 24 months.
The program initially covers Maharashtra, Gujarat, Chhattisgarh, and Karnataka, with plans for gradual expansion across India. Customers can access the financing through authorized Piaggio dealers, using their existing vehicle as collateral. Interest rates begin at 10.99% per annum, with multiple repayment options available including ECS, NACH, and UPI AutoPay.
Battery replacement costs have been identified as a significant barrier to electric vehicle adoption in the commercial sector. The typical lifespan of batteries in commercial three-wheelers ranges from three to four years, after which operators face substantial replacement expenses that can impact their business operations and cash flow.
Diego Graffi, Chairman and Managing Director of Piaggio Vehicles, stated that the initiative aims to make electric vehicle ownership more financially viable for commercial operators. The company positions this as the first such financing program in India's electric three-wheeler industry.
Tejal Bhartiya, MD and CEO of RiseWise Capital, emphasized that the program is designed to ensure continuous vehicle uptime for business operations without imposing high upfront costs on customers. The financing structure requires mandatory battery replacement insurance, which can be arranged through Piaggio dealers or partners.
Piaggio Vehicles, a subsidiary of Italy's Piaggio Group, entered the Indian market in 1999 and currently operates a manufacturing facility in Baramati, Maharashtra. The plant has an annual production capacity of 330,000 commercial vehicles and 180,000 two-wheelers. The company manufactures three-wheelers in diesel, petrol, CNG, LPG, and electric variants.
RiseWise Capital specializes in mobility financing solutions and currently operates in four Indian states. The company focuses on custom financing products for the transportation sector.
The electric three-wheeler market in India has grown as businesses seek alternatives to traditional fuel vehicles amid rising operating costs and environmental regulations. Commercial operators, including those in last-mile delivery and passenger transport, constitute a significant portion of the electric three-wheeler customer base.
The financing program requires customers to have used their electric three-wheeler for a minimum of three years before qualifying for battery replacement financing. The original vehicle must remain operational and serve as collateral throughout the loan period.
Industry data indicates that battery costs can represent 30-40% of an electric vehicle's total price, making replacement a substantial financial consideration for operators. The financing option allows businesses to spread this cost over two years rather than paying upfront.
The partnership between Piaggio and RiseWise Capital represents one approach to addressing the total cost of ownership challenges in electric vehicle adoption. As the electric vehicle market develops in India, battery lifecycle management and replacement financing are emerging as critical factors in commercial fleet operations.