Ujjivan, Kinetic tie up for vehicle financing

ST CORRESPONDENT 
Thursday, 13 June 2019

Speaking at the event, Firodia said that electric vehicles bring down the cost per kilometer to 50 paise, compared to Rs 2 for CNG vehicle and Rs 5 for petrol and diesel vehicles

Pune: Apart from economical benefits, electric vehicles also provide environmental benefits, said Kinetic Group Chairman, Arun Firodia. He was speaking at signing of MoU between Ujjivan Small Finance Bank and Kinetic Green Energy and Power Solutions Ltd, to provide vehicle financing solutions.

The bank is starting the financing solution as a pilot project in Bihar and will slowly expand to other regions.

Speaking at the event, Firodia said that electric vehicles bring down the cost per kilometer to 50 paise, compared to Rs 2 for CNG vehicle and Rs 5 for petrol and diesel vehicles.

“Electric vehicles are environment-friendly as there is no pollution. Our range of electric three-wheelers helps not only reduce air pollution in our crowded cities, but also brings down the cost of commuting for the common man. Owning and operating our lithium-ion based electric three wheelers for passenger and cargo delivery is a solid self-employment opportunity for unemployed youths and those engaged in menial jobs or renting an autorickshaw. They can be respectfully and gainfully employed and earn as much as Rs 30,000 a month using these three-wheelers. With no fuel cost and very low operating cost, their take home earning is very good. However, this segment of society needs affordable loans to get started with this enterprise. We are very optimistic about our tie up with Ujjivan Small Finance Bank, as they understand this category of customers very well,” added Firodia.

He said that the company has sold 15,000 vehicles in North India till date and are planning to venture into South India. “As northern states have flat land, we can run the vehicles on low power. However for entering the Southern states, we need more power for medium and high speed vehicles.” added Firodia. The chairman explained that an electric three wheeler’s mileage is 70 km per charging .

Speaking about need for financing in the sector, Ujjivan Managing Director Samit Ghosh said, “The electric vehicle is a potential income earning opportunity, especially beyond the Tier-II cities of the country. We recognise that very few financial institutions are offering such financing options in this segment. Our partnership with Kinetic will go a long way in addressing the financial needs of such customers and enable them to join the mission of a cleaner and a greener India.”

The bank officials said that they will finance about 80 per cent of the cost of vehicle for a period of one to three years.   

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