Electric two-wheeler maker Ather Energy on Thursday said it has partnered with HDFC Bank and IDFC First Bank to offer retail finance for its e-scooters. The collaboration will allow Ather Energy customers to avail instant loans from the two private lenders at low-interest rates and with a maximum LTV (Loan-to-value), a release said.
The EV maker said its customers have preferred a 95 per cent LTV option while choosing a financing plan, with 2-3 years being the most preferred period for loan repayment. The evolving EV industry has recorded significant growth in the past year, the company said, emphasising that it has witnessed a notable surge in demand for its 450 series, registering a sequential rise of 20 per cent.
Stating that finance penetration at Ather has grown significantly over the past two years, the company said it aims to provide a stress-free transition to EV ownership and ease of purchase for its customers. IDFC and HDFC Bank offer loans to new-to-credit customers (those with no credit history), which account for roughly 20-25 per cent of the overall Ather customer base, it added. This has become a critical segment since the company is expanding into Tier 2 and 3 cities, according to Ather Energy.
Automobiles in India are largely bought through finance options. As many as eight out of 10 vehicles sold in India are two-wheelers, and finance plays a critical role in the purchase journey of a customer, the company said. Finance penetration for two-wheelers in India is close to 50 per cent, Ather Energy said. As per a recent report, the domestic two-wheeler loan market is expected to grow to USD 12.3 billion by 2025, the company said. The demand for electric vehicles has grown exponentially over the past year. The company has a strong focus on understanding consumer needs and providing multiple financing options for an easy transition to EV, said Ravneet Phokela, Chief Business Officer at Ather Energy.
“We are confident that our partnership with HDFC and IDFC First banks will ensure ease of purchase for customers and will boost the confidence of EV enthusiasts to join the electric revolution,” he said. The company, he said, will continue to partner with leading banks, NBFCs, and financial institutions to provide lucrative financing options to its consumers. IDFC First bank was an early adopter of the EV market and has established itself as a bankable partner for Ather’s customers, accounting for about 75 per cent of the company’s customer base, the release said.
“IDFC First Bank’s affordable loan offerings and end-to-end digitised customer journey will offer a distinct edge to Ather Energy’s customer financing experience, said Rishi Mishra, Business Head for vehicle loans at IDFC First Bank. Ather Energy currently operates in 26 cities, including Bengaluru, Chennai, Hyderabad, Pune, Jaipur, Kochi, Ahmedabad, Mumbai, Mysore, and Hubli.