Financing India’s Shift To EVs
How did the idea of Ohm Mobility come into being?
Since 2008, I’ve been working in the solar energy business and have been passionate about new business models, which make clean energy accessible and affordable to everyone. In 2022, I saw a once-in-a-100-year shift in the Indian automotive industry from ICE vehicles to electric vehicles (EVs) and decided to move toward the Indian auto sector. This shift meant a lot of opportunities for new players to build tech-driven businesses and that’s how Ohm Mobility was born.
As an entrepreneur, I believe that if you wish to build a large business, you need to solve a large problem. In that respect, the Indian auto sector is massive and accounts for seven per cent of India’s GDP.
What are the big opportunities that your company is focusing on in the year ahead?
As the demand for electric vehicles grows, so will the need for financing. We at Ohm Mobility are building a new-age EV financing company and have started financing fleet, drivers working in the last mile delivery, but will quickly expand into other EV lending opportunities as well. Since EVs largely come connected, it presents a unique set of opportunities to use vehicle data to make a credit decision.
In 2021, we estimate about USD 300 million was deployed in EV financing in India and the number is estimated to cross USD 50 billion by 2030. With a CAGR of 76 per cent, EV financing presents a massive opportunity both to existing banks/ NBFCs and to the younger fintech companies like us.
Despite many challenges, what do you think is required to shape up the EV industry?
In 2021, EV sales have grown three-fold in comparison to 2020, and will see silimar growth in 2022. Despite several challenges in the EV industry, growth in the sales number is encouraging. If I had a magic wand, I would create two to three stellar EV products for the Indian roads that would be extremely durable, have a great driving range and will come at an affordable price. This will overall solve a host of issues.
