Kinetic Green Energy And Cholamandalam Sign Pact To Finance EVs

Pune based EV manufacturer Kinetic Green Energy on July 4 announced that the buyers can finance their EVs with Cholamandalam Investment and Finance Company, Chennai-based Murugappa Group’s financial services arm. Both the companies having entered into an agreement, under which the customers can avail themselves of getting the EVs financed by Chola.

Kinetic manufactures both electric two-wheelers and electric three-wheelers including e-buggies. The collaboration is intended to make affordable the Kinetic Green’s battery-operated vehicles for the price-conscious buyers at attractive interest as well as catering to newer markets with Chola’s pan-India presence. It will be win-win situation for both complementing to each other.

A statement released by Sulajja Firodia Motwani, founder-CEO, Kinetic Green reads, “This partnership will enable Kinetic Green and its dealers to offer easy and affordable financing solutions to our EV customers, which perfectly fit their needs and repayment abilities. With attractive finance options offered under the collaboration, Kinetic Green’s customers can be assured of competitive financing solutions for their finance needs. This will further propel the company’s electric two and threewheelers’ demand,”

A similar statement has been released Ravindra Kundu, Executive Director, Cholamandalam Investment Limited, “This relationship will help us in taking a step closer to fulfilling our ESG goals. Under this alliance, the biggest beneficiaries will eventually be the customers. With our strong network of 1,145 plus branches across India, we aim to offer the customers customised finance packages that would come with speedy, convenient and transparent processes,”.

The number of fintechs and the NBFCs providing financial services to consumers is not high in the country as the companies are wary of the resale value at present. There is no secondary market for EVs. The electric vehicles are generally around 80% with a rate of interest of 150-200 bps more than ICE vehicles. Since the risk associated with these vehicles is high, the interest rate is also high. Till May 2022, one-third of EV vehicles were being sold out through financing and promised to grow cent percent with access to the right financing options.