New Delhi, Jan 25 (PTI) The financial challenges before mass adoption of electric vehicles in the national capital were discussed in a meeting organised by the Dialogue and Development Commission of Delhi (DDC) on Monday.
The meeting held in partnership with the Delhi Finance Corporation sought to identify various interventions that can be made by the city government to encourage financing institutions to support adoption of electric vehicles in Delhi. The consultation was supported by RMI India and WRI India, said a DDC statement.
Speaking at the virtual meet, DDC vice-chairperson Jasmine Shah said, 'Considering that lack of financing options for electric vehicles is a critical barrier for mass adoption, the discussion provided a much-needed conversation among all the stakeholders.' 'An important feedback received during interaction with various stakeholders earlier was higher interest rates on loans for electric vehicles due to 'persistent scepticism' concerning electric vehicle technology coupled with issues of vehicle residual value and second-life of battery,' Shah pointed out.
Though the challenge for banks to finance electric vehicles is the new technology and low resale value, they have an important role to play for promoting volumes of electric vehicles segment through attractive loan terms, said Amit Bhatt, the executive director of World Resources Institute (WRI) India.
'This discussion helped us in understanding the challenges in greater detail and work towards addressing these issues,' Bhatt said.
The meeting was attended by representatives of leading financing institutions, vehicle manufacturers, delivery service providers, and fleet aggregators to discuss the various financing challenges in the adoption of electric vehicles in Delhi.
The Delhi government notified its electric vehicle (EV) policy on August 7, 2020 and has aimed at having an electric vehicle market share of 25 per cent of all new vehicle sales in Delhi by 2024. PTI VIT CK