HDFC bank aims to triple its lending electric vehicle (EV) purchases are proving profitable three years after initial testing and asset quality remains strong despite some headwinds at the automobile industry level.

After initially testing the waters with 589 EV purchases and lending to a book size of ₹5,100 crore, the bank aims to triple the book size by 2025.

“We are aggressively pursuing EV financing in line with our goal of becoming carbon neutral by 2031-32,” said Vikas PandeyBusiness Head – Auto Loans in HDFC Bank. “We are the market leader in passenger vehicle financing. Out of 100 EVs sold, we are financing 15-17. Hence, we have a market share of over 15%.”

Data shows 3,800 passenger EVs were sold in October, of which HDFC Bank financed 589 vehicles. The bank disbursed such loans worth Rs 170 crore in October.

“We are looking at a minimum of 2.5 times growth this year in terms of the number of vehicles financed,” Pandey said. “From here, the numbers should go up and in the next three years, we are looking at 3X growth. By 2025, we are targeting a market share of over 20%.”

The bank is offering a loan tenure of eight years with interest rates starting from 8.05%. The average loan ticket size is ₹17 lakh. Metros and urban locations account for 80% of the demand as access to charging infrastructure remains a barrier to widespread EV adoption in the country.

“Our recharging infrastructure is tilted towards urban areas, which we do not see in semi-urban and rural areas,” Pandey said.

There are 2,500 EV chargers across 270 cities in India. About 500 of these are in Maharashtra.

According to Pandey, around 80% of vehicles financed by HDFC Bank are manufactured by Tata Motors While the rest is held by MG Motors and Hyundai. With Chinese player BYD entering India and M&M expected to launch its EV, the market is set to expand.

Last year, 19,500 electric passenger vehicles were sold in the country. Till October this year, 20,500 vehicles have been sold.

Today, the penetration of EV passenger vehicles in the automobile sector is less than 1%.

India’s EV financing market will be worth $50 billion (₹4.1 lakh crore) by 2030, when 30% of private cars, 70% of commercial vehicles and 80% of two- and three-wheelers in the country are expected to be electric. Powertrain.