Naveen Munjal Claims Less Than 7% Electric Two Wheelers Get Financed

Naveen Munjal, Managing Director of Hero Electric, has claimed that less than seven per cent of electric two wheelers get financed in India leading to fewer people buying electric bikes in the country. He has cited the difficulty in calculating the replacement value of the e-two wheelers as a primary reason for lower finances.

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The statement was made by the Hero Chief at the Edelweiss Vehicle E-Series 2021’s virtual meeting. He added that the low speed of electric two wheelers and non-mandatory vehicle registration makes it difficult for financiers to trace the vehicle. The lack of easy finance is an added hindrance to the sale of electric two wheelers in India besides they being more expensive than their petrol counterparts.

The figure is particularly surprising as about 80 per cent of the two wheeler owners in India rely on banks or financial institutions to get their vehicles financed, as per industry estimates.

However, Munjal did mention that the financing of electric two wheelers has improved recently as buying of e-two vehicles lead to the improvement of the credit profile of many customers.

Hero Electric, which currently dominates the electric two wheeler market in India, targets to sell about 1,00,000 units in FY 2022. In FY 2020, the Company sold more than 50,000 e-two wheelers in the country, which was the highest among all its competitors. Besides, the Company has set up 1,500 electric vehicle charging points across India and targets to install more than 20,000 charging points by 2023.