RevFin, a purely digital platform for financing electric vehicles, signed an agreement with Bajaj Auto to provide financing for Bajaj’s high-speed electric three-wheelers. The pact is aimed at further consolidating the position of Bajaj Auto in the electric vehicle segment, more so in the growing high-speed three-wheeler market of India, seen as a cleaner urban transportation alternative.
It brings together experience in financial services with an intimate understanding of the three-wheeler market that RevFin has built for itself. Equipped with this expertise in electric vehicle financing, the latter is well-equipped to support Bajaj Auto in its effort toward taking its range of electric three-wheelers to the mass markets. The former has a very strong foothold in EV financing, and this tie-up is surely going to help Bajaj Auto take its electric three-wheeler offerings to the mass markets. The partnership comes at a juncture when the domestic automotive market is rather rapidly transitioning toward electric mobility, placing much-needed impetus on sustainable and cost-efficient means of movement.
Bajaj Auto is among the largest in the automobile sector in India, offering the widest range of two- and three-wheelers. In this deal, Bajaj aims to strengthen its position in the electric vehicle industry, focusing particularly on high-speed three-wheelers. This can be looked at as a potential move to further extend the reach and popularity of Bajaj’s electric three-wheelers among a bigger audience: the individual consumers and fleet operators alike.
The financing solutions that RevFin is offering are likely to be of essence in scaling the adoption of electric three-wheelers across India. Also critical for the rapid shift toward e-vehicles is the inclusion of availability of low-cost and convenient financing options, very specifically in a price-sensitive market like India. Through tailored financing solutions, RevFin assists in reducing some entry barriers that present consumers and fleet operators wanting to switch to electric three-wheelers but who are wary because the vehicles come at a slightly higher price point upfront.
This association is a part of the broader industry trend of financial service providers and vehicle manufacturers coming together in a tie-up. Such collaborations are important in making electric vehicles more pockets-friendly to a higher percentage of the population. In the case of Bajaj Auto and RevFin, it is going to have an impact of immense proportions on growing the Indian electric three-wheeler market, viewed as integral to the country’s broader push toward sustainable urban mobility.
The electric three-wheeler will perform particularly well in the Indian market because of its affordability, ease of use, and suitability for short-distance travel within urban settings. They are increasingly being accepted for first and last mile connectivity in congested areas with serious concerns of air pollution and traffic congestion contributed by traditional vehicles. With a focus on high-speed electric three-wheelers, Bajaj Auto is also entering a growing market segment that gives a more environmentally friendly alternative to traditional fossil fuel-run vehicles.
The deal between RevFin and Bajaj Auto further reflects a larger point about the automobile industry in India. It is one where financial inclusion action directly rises with the stakes of adopting new technologies, in particular those related to electric vehicles. By opening up financing options to the broadest range of customers, including those from relatively low-income groups, RevFin and Bajaj Auto will democratize electric vehicles and fill the missing links in achieving the government’s objectives of reducing carbon emissions and encouraging sustainable transportation.
Therefore, on the whole, the coming together of RevFin and Bajaj Auto would definitely be much-needed support to their campaign for the cause of electric mobility in India. The two companies, hence—one engaged in financial services and the other in automotive manufacturing—are well positioned to drive the accelerated adoption of electric three-wheelers across the country. This collaboration shall not only benefit the two companies in achieving their goals but also the larger goals in terms of promoting financial inclusion while supporting a cleaner, greener transportation ecosystem for India.
Source: RevFin, Bajaj Auto
Credits: RevFin, Bajaj Auto