EV Motors India Founder Vinit Bansal Talks About Investment Trends In the Indian EV Market
EV technology is at a nascent stage in India and financial institutions are wary of investing as they do not understand the risks associated with it
Electric vehicle (EV) technology is at a nascent stage in India and thus financial institutions are wary of investing as they do not understand the risks associated with the technology, said Vinit Bansal, CEO and founder of EV Motors India while speaking at an industry event.
Speaking to Entrepreneur India, Bansal also added that currently most of the investments are coming into the vehicle front and in the manufacturing space, however investment is yet to pick up in the charging and battery space which forms the heart of EVs. However, Bansal in optimistic about the Indian EV space and said, “Over the next couple of years, we will see a lot more investments in batteries and charging but in the next two years business model needs to evolve.”
Explaining about the battery and infrastructure of the EV industry, Bansal also believes battery swapping may be viable for two and three wheelers for a short period of time but charging will make more sense in the longer period. According to him, battery swapping would mean investment in an additional battery which is outside the vehicle and this may not be viable as battery constitutes almost 40 per cent of a vehicle’s price.
While speaking at the panel discussion during the event, Bansal said, “The upfront costs are very high and thus financial re-engineering is very important for e-mobility and banks and financial institutions have a big role to play.”
Bansal also believes there is a big push from the government in developing this space and this will lead to a positive change. “I see an inflection point happening somewhere in between mid and end of 2021. From there onwards, the scale of adoption is going to be faster,” Bansal added.