Ather Energy partners with HDFC and IDFC First Banks to provide easy financing options
Ather Energy has announced its partnership with HDFC and IDFC First banks to provide easy financing options to its consumers.
The ever-evolving EV industry has witnessed significant growth in the past year. As a pioneer in space and a driving force behind the EV revolution, Ather Energy aims to provide a stress-free transition to EV ownership and ease of purchase for its customers.
These partnerships will allow Ather Energy customers to avail of instant loans from HDFC and IDFC First banks at low-interest rates and with a maximum LTV (Loan-to-value). Ather Energy customers have preferred a 95 percent LTV option while choosing a financing option, with 2-3 years being the most preferred duration to repay the loan.
Speaking on the partnerships, Ravneet Phokela, Chief Business Officer, Ather Energy said, "The demand for electric vehicles has grown exponentially over the past year and consumers are increasingly looking to join the EV revolution. At Ather Energy, we have a strong focus on understanding consumer needs and providing multiple financing options for an easy transition to EV. Finance penetration at Ather has grown significantly over the past two years. 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. We will continue to partner with leading banks, NBFCs, and financial institutions to provide lucrative financing options to our consumers"
IDFC First bank was an early adopter of the EV market and has established itself as a bankable partner for Ather's customers. IDFC accounts for about 75 percent of the Ather energy customer base. IDFC and HDFC banks both offer loans to new-to-credit customers (those with no credit history), which account for roughly 20 to 25 percent of the overall Ather customer base. This has become a critical segment since the company is expanding into Tier 2 and 3 cities.
Mr. Rishi Mishra, Business Head, Vehicle loans, IDFC First Bank said, "IDFC First banks affordable loan offerings and end to end digitized customer journey will offer a distinct edge to Ather Energy's customer financing experience ."
Automobiles in India are largely bought through finance options. 8 out of 10 vehicles sold in India are 2 wheelers, and therefore, finance plays a critical role in the purchase journey of a customer. In India, finance penetration for two-wheelers is close to 50 percent. Recent reports cite that the Indian two-wheeler loan market is expected to grow to $12.3 billion by 2025.