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Electric Vehicle Finance Market Trends

Report ID: GMI7320
Published Date: Nov 2023
Report Format: PDF

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EV Finance Market Trends

EV-specific financial products could emerge as a prominent trend in the EV finance business. Financial institutions and EV manufacturers are developing specialized financing products tailored to EV buyers. These products may include lower interest rates, extended loan terms, and EV-specific insurance options to encourage more consumers to switch to electric vehicles, thus stimulating market growth.

For instance, in September 2023, L&T Finance revealed its partnership with Ather Energy, an electric vehicle (EV) manufacturer. They jointly announced a financing arrangement that allows customers to receive up to 100 percent financing based on the loan-to-value (LTV) of Ather's vehicles. The loan amount will be determined using the on-road price as a basis and will be subject to variation based on the individual customer's creditworthiness.

Technological breakthroughs and falling costs are among the key factors fostering the adoption of EV finance. The electric vehicle industry has seen significant advancements in battery technology, which have led to increased driving ranges, faster charging times, and reduced production costs.

Quoting an example, in October 2023, Factorial Inc., a notable player in the field of solid-state battery technology for electric vehicles (EVs), announced the shipment of its A-samples of solid-state EV battery cells with a capacity of over 100 ampere-hours to top-tier global automotive OEM partners. These battery cells, which are essential for future large-scale production, have reached a significant achievement by being the first of their kind to pass the rigorous safety assessments outlined in UN 38.3 standards. Factorial's most recent battery cell not only fulfills the performance requirements set by the automotive industry but also represents a significant advancement in terms of safety.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of EV finance reached USD 38.8 billion in 2022 and is set to witness 31.9% CAFR from 2023 to 2032, as many governments around the world are introducing incentives and regulatory reforms to encourage the adoption of electric vehicles.

The passenger car segment held a market share of over 40% in 2022, as electric vehicle (EV) finance is increasingly preferred for passenger car for its potential cost savings and environmental benefits.

Europe market is poised to show tremendous growth through 2032, due to the stringent emissions regulations and environmental concerns that are boosting EV sales, as well as substantial incentives offered by governments, including grants and tax benefits, to promote EV adoption.

Ally Financial, Bank of America, Capital One Auto Finance, Citizens Financial Group, Ford Credit, JPMorgan Chase & Co, Nissan Motor Acceptance Corporation, PNC Financial Services Group, Santander Consumer USA, and TD Auto Finance.