Terra Motors is entering the financing of electric vehicles with the introduction of Terra Finance India
Terra Motors, a Japanese electric vehicle manufacturer based in Tokyo, reportedly entered the electric vehicle financial market with the establishment of Terra Finance India through a joint venture with Vedika Credit Capital. This approach is part of the electric car maker’s ongoing efforts to co-create a sustainable environment for electric vehicles.
According to reliable reports, by taking this step, Terra Finance is trying to simplify the procurement and financing of three-wheeled electric vehicles while minimizing the risk and creating jobs for them.
To put it in a nutshell, Terra Finance India is a collaborative venture founded to promote the microfinance industry that would support the purchase of electric vehicles in India’s rapidly evolving commercial EV sector.
Vedika President Mr. Gautam Jain stated that while there are numerous barriers to accessing microfinance in the new EV market, they hope to build a safe and easy business that will help revitalize the local economy and local problems to alleviate.
Gautam added that Vedika has been working with Terra Motors since 2018 to help them create jobs and increase revenue in low-income regions by offering loans for their EV tricycles. The company believes the impact of the coronavirus will add much more to the value of these assets.
Terra Motors manufactures and sells three-wheeled electric vehicles in India to help build transportation infrastructure and create jobs in the last mile and rural areas.
It has been reported that 70-80% of the Indian market for three-wheel electric vehicles is in economically weaker countries such as West Bengal, Bihar, Uttar Pradesh and Assam. In addition, these six states make up the bulk of the 3W electric vehicle market in India. All three types of electric vehicles have a potential consumer base of 51.4% of the population in India.
Over the years, Terra Motors has given its drivers access to credit through agreements with NBFCs such as Prestloans and Pooja Finelease. Due to the positive test reactions to loans in 2018, Terra Motors decided to enter the EV financing market.
Credit source: https://www.constructionweekonline.in/business/19016-terra-motors-forays-into-ev-financing-with-the-launch-of-terra-finance