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Terra Motors enter EV financing with Terra Finance India launch

Terra Motors enter EV financing with Terra Finance India launch
Terra Motors enter EV financing with Terra Finance India launch

Terra Motors, a Tokyo-based Japanese electric vehicle maker, has reportedly entered EV finance market with the establishment of Terra Finance India through a joint venture with Vedika Credit Capital. This approach forms a part of the electric automaker's continuous effort to establish a sustainable environment for EVs through co-creation.

According to reliable reports, Terra Finance, through this move, seeks to simplify procuring 3 wheeler EV loans and financing, while minimizing risk and generating jobs for them.

For the record, Terra Finance India is a collaborative venture firm formed to promote the microfinance industry that would assist the purchase of electric vehicles in India's fast-developing commercial EV sector.

President of Vedika, Mr. Gautam Jain, stated that while there are numerous obstacles in accessing microfinance in the new EV market, they hope to establish a secure and easy business that will help reviving the local economy and alleviating local issues.

Gautam added that since 2018, Vedika has been working with Terra Motors to help them generate employment and raise earnings in low-income regions by offering loans for their EV 3-wheelers. The firm believes that the influence of coronavirus will increase the value of these assets much more.

Terra Motors has been producing and selling three-wheeled electric vehicles in India to help build transportation infrastructure and create jobs in the final mile and rural regions.

It has been reported that 70-80% of India's three-wheeled electric vehicle market is in economically weaker states such as West Bengal, Bihar, Uttar Pradesh, and Assam. Moreover, In India, these six states make up the majority of the market for 3W EVs. All three types of electric vehicles have a potential consumer base of 51.4% of the population in India.

Over the years, Terra Motors has already been providing credit access to its drivers through agreements with NBFCs such as Prestloans and Pooja Finelease. Terra Motors chose to enter the EV finance market as a result of the positive trial reactions to loans in 2018.

Source Credit: https://www.constructionweekonline.in/business/19016-terra-motors-forays-into-ev-financing-with-the-launch-of-terra-finance

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