Terra Motors is entering the financing of electric vehicles with the introduction of Terra Finance

Terra Motors stepped into the financing of electric vehicles with the launch of Terra Finance India. This step is part of the electric car giant’s ongoing initiative to co-create a sustainable ecosystem for electric vehicles. Terra Finance will provide drivers with easy access to 3W EV credit and finance while reducing risk and creating jobs. The finance division will be set up under Terra Finance India, a joint venture company created to advance the microfinance business that will support the purchase of electric vehicles in India’s rapidly growing commercial electric vehicle market. Terra Finance India is a joint venture between Terra Motors and its local partner, Vedika Credit Capital (Vedika), based in Jharkhand.

Gautam Jain, President of Vedika said, “While there are many challenges in the penetration of microfinance into the new electric vehicle industry, we want to build a safe and convenient business that will help revitalize the local economy and solve local problems. We’ve been working with Terra Motors since 2018 to create jobs and raise incomes in low-income communities by providing loans for their EV tricycles. We believe that the effects of Corona will further increase the value of these projects. Through this partnership, we hope to maximize the social value of our business by combining Terra Motors’ commitment to the electric vehicle business and India, our brand strength and our financial know-how and experience to create a better society. “

Terra Motors manufactures and sells 3-wheel electric vehicles for the purpose of developing transportation infrastructure and creating jobs in the last mile and in rural areas in India. 70-80% of the 3-wheel electric vehicle market is in the economically weaker countries (Bihar, West Bengal, Assam and Uttar Pradesh). These 6 states make up the main market for 3W electric vehicles in India. The potential customer base for all three types of electric vehicles is 51.4% of the total Indian population.

Terra Motors already offered its drivers access to credit through partnerships with various NBFCs such as Prestloans and Pooja Finelease. Based on the test responses to loans in 2018 that resulted in full repayment, Terra Motors decided to move into EV financing. Akihiro Ueda, President and CEO of Terra Motors India, added, “By expanding the ability to more easily acquire Terra Motors e-mobility, we aim to provide“ earning power ”that will improve the lives of people who don’t have done benefit from existing financial services and have been able to build a sustainable transport infrastructure. The market for e-rickshaws is currently 80,000 to 90,000 units per year, but we believe there are a certain number of potential customers who want to buy an e-rickshaw but cannot do so due to a lack of financial services due to their low income bracket support. Our goal is to build a microfinance business that will reach these customers, raise the level of the overall market and create a service that will help them lead a better life in order to solve the social problems exacerbated by Corona. “