Muthoot Capital and Greaves Cotton’s evfin join hands to promote electric two-wheeler financing

Through its 100% EV-focused lending platform evfin, Greaves Finance, a non-banking financial company (NBFC) and an entirely owned subsidiary of Greaves Cotton, declared a collaboration with Muthoot Capital Services, one of India's most rapidly-growing NBFCs and a publicly traded company of the Muthoot Pappachan Group.

To expand the number of financing options for electric two-wheelers available throughout India, the collaboration will introduce a co-lending programme. The arrangement, which may result in a transaction worth up to Rs 150 crore ($18 million), citing the partners, Financial Express reported. The magnitude of the transaction shows the scale and ambition of the drive to encourage the wider adoption of electric vehicles in India.

The announcement came after the government of India’s decision to conclude the FAME-II subsidy program by March 31 2024. Exempted for the FAME-II, the upfront prices of EVs are expected to increase creating a potential market for EV financing companies. 

Amid the ride of EV finance market, the Muhtoot-evfin partnership demonstrates both organisations' dedication to hastening the adoption of sustainable transportation options, particularly in light of India's increasing demand for electric vehicles (EVs). Through the use of evfin's specialised knowledge of customised automotive financing based on asset lifecycle management and Muthoot Capital's well-established presence in the financial sector, this partnership aims to provide customers looking to buy electric two-wheelers with convenient, cost-effective, and tailored financing options.

Greaves Finance CEO Sandeep Divakaran stated, "We are excited to work with Muthoot Capital to offer this revolutionary co-lending arrangement. Through this agreement, we can further demonstrate our commitment to advancing sustainable mobility solutions and to provide our clients with cutting-edge financing choices that adapt to their changing demands.”

"We are happy to announce our first venture into an electric two-wheeler partnership," stated Mathews Markose, CEO of Muthoot Capital Services. He further said, "We are excited to collaborate with Greaves Finance, who is a pioneer in this field. This partnership will undoubtedly help us achieve our goal of improving the lives of ordinary people by assuring them of financial security. In my opinion, a two-wheeler is one of the most desired cars among Indian families, particularly those in the lower middle class. Collaborations like this will enable us to get closer to our clients.”

The collaboration is expected to face competition from similar partnerships like Ecofy and RevFin. The traditional vehicle financing options available in the market are mostly tailored for ICE vehicles rather than EVs. New finance options in the field of sustainable mobility are expected to foster a free market in the current and future EV market. 

A wide spectrum of electric two-wheeler manufacturers, such as OLA Electric, Ather Energy, Ampere, Hero MotoCorp, and TVS Motor, would be supported by the cooperation. The programme hopes to provide clients with a variety of alternatives and promote innovation in the electric car industry by working with top OEMs. Through their provision of all-inclusive financing options for electric two-wheelers, the two businesses stand to have significant influence over the trajectory of mobility in India going forward.