The automobile sector of India has been growing a lot in the recent years. This growth is both about the size and the technology. So, as a result, there has been the inclusion of many new things. One of those things are Electronic Vehicle, aka EV. This has led to many transport business owners taking loans to buy EVs and using EV loan software to manage the loans.
In a perfect world scenario, buying vehicles for your transport business on loan should not be a tricky process. But when it comes to EVs, that is definitely not the case. It is more than just about finding a good autopay loan servicing software in India. If you keep a close eye on the industry, then you will notice that there are many hurdles when it comes to financing for electronic vehicles.
Here, we will tell you a bit about the challenges of EV financing. We will also give you a few solutions for dealing with these challenges.
Why Are There So Many Challenges for EV Financing?
Many things are responsible for creating hurdles on the path of EV financing. Some of these reasons are:
1. Lack of knowledge
The biggest reason why there are so many hurdles in this financing process is the need for more knowledge. Most people are completely unaware of how this industry works. They are unsure if there is any growth scope for electronic vehicles in India.
As a result, there is a shortage of tools for EV financing. From the number of fund lenders to the EV loan software, there are not many options for anything, ultimately resulting in the creation of hurdles.
2. Lack of Charging Infrastructure
India is still trying to adapt to the EV revolution that is going on in this world. Western countries have seamlessly transitioned to the adaptation of EVs, but we are still slowly walking on the path to it. This is why there are not many charging stations around the country.
You will literally have to drive for miles to find even one place. This puts you in a place where you can be stranded in the middle of nowhere because there is no charge in your car, making it tough for you even to use the automobile in the first place.
3. Uncertainty over Government Incentives
Well, the biggest reason why there are so many challenges in EV financing is nobody knows if the government will continue showing its support for EVs even in the future days. Right now, the government has indeed introduced few incentives and subsidies for EVs. They are doing this to make people feel confident in buying EVs.
That being said, nobody knows about the lack of long-term clarity of these policies. As a result, this is creating a lot of uncertainty for buyers but more in financers. This is why most people are feeling uncertain about buying these by taking EV loans and maintaining them on EV loan software.
Challenges that You Will Face
There are many hurdles that come with EV financing. Some of these challenges are:
1. Purchase cost
The biggest challenge of the EV industry is the huge vehicle purchase cost that goes way above than that of a petrol or diesel car. This is simply because there is far more mechanism that goes into creating them. The batteries used in these vehicles come at a much higher cost because of their technology. So, this stops many individuals from putting their money towards buying these.
One easy and effective solution for this problem is taking an EV loan. There are some places that offer loan amounts for you to buy EVs. But remember to use an autopay loan servicing software in India to track the loan. This will help you a lot in the process.
2. Lack of Loan Provider
There are very few options for EV loan providers in the market, as there is a lack of knowledge. People aren’t fully sure about the adaptation of EVs in the country. So, it is making it hard for them to understand the scalability of this. Thus causing a shortage of loan providers and good EV loan software.
Well, the only way for you to solve this issue is to carry out a proper market analysis. Make sure you search for the trusted places in this country that offer EV loans at a good rate of interest. These places will be able to understand the scalability of this, thus further helping you in the process.
3. Resale value
This is not an issue that comes before you an EV, but it does affect your selection process. No one buys a car with the aim of keeping it for life. Most people buy and sell after a few years. While many understand how general car depreciation works, they may not know how it works for EVs.
This makes them feel uncertain about the resale value of these cars. Well, one good way of solving this studying the reports of the Western countries. This will help you to understand how the depreciation process works for EVs, ultimately making you feel confident about buying these.
Final Findings
The process of buying an electronic vehicle is more than just taking a loan and maintaining it on an EV loan software. Rather, there is way more to that process and that definitely includes the challenges. Here, we have tried to give a few solutions to deal with these challenges. We are sure that this will definitely be of great help.
