The CXO Playbook: Preparing Your Finance Strategy for 2030

In the coming decade, EV adoption will not be driven solely by battery prices or charging networks. It will be driven by the ability of consumers and businesses to finance their purchases seamlessly. For original equipment manufacturers (OEMs), financing has moved from being an afterthought at the dealer level to becoming a strategic lever that determines sales velocity.

In India, only about 60% of EVs are financed, compared to 75–80% for internal combustion engine (ICE) vehicles. The gap is not because of lack of demand but because financing journeys are fragmented, slow, and in many cases inaccessible. This is where digitization becomes the differentiator.

The message for CXOs is clear: by 2030, success in EV sales will depend on how effectively finance is embedded into the customer experience. This playbook outlines how digitization can reshape financing models, what structural levers must support it, and how OEM leaders should prepare their strategies for the next five years.

2025 Reality Check: Where India Stands Today

As of 2025, India’s EV financing landscape remains uneven.

• Two- and three-wheelers (E2Ws, E3Ws) are seeing high adoption in Tier-1 and Tier-2 cities, but financing penetration is still limited to fintech-driven NBFCs such as RevFin or Credit Fair. These players have digitized credit journeys using mobile-first underwriting but cannot scale to the level that public-sector banks can.

• Passenger EVs face affordability gaps. Banks like SBI and HDFC have rolled out EV-specific loans, but many still rely on manual processes, physical documentation, and traditional credit scoring. Loan approval often takes days, not minutes.

• Fleet financing for e-buses and commercial EVs is progressing only where state guarantees exist. Outside such schemes, lenders remain cautious due to residual value risk.

Digitization in EV finance is happening, but it is piecemeal. The challenge for CXOs is to make digitization the centerpiece of their finance strategy, not a side experiment.

2030 Destination: What a Digital-First Financing Ecosystem Looks Like

By 2030, India’s EV financing will look very different if digitization is executed well.

• End-to-end paperless journeys: Customers should be able to discover, apply for, and receive loan approval on a mobile app within minutes.

• AI-driven underwriting: Alternative data UPI transactions, e-commerce histories, mobility data will replace reliance on credit bureau scores.

• Embedded finance at point of sale: Loan options will appear seamlessly on OEM websites, mobile apps, and dealership kiosks, integrated into the booking flow.

• Dynamic loan structuring: Products such as pay-per-use, variable EMIs linked to income cycles, or BNPL-style options for batteries will become common.

• Digital ESG financing: Global green capital will flow into EV retail loans via securitisation platforms, lowering interest rates for consumers.

This destination is not hypothetical China, Europe, and the US already show glimpses of it. The task for Indian CXOs is to design a strategy that makes this future real by the end of the decade.

The Playbook for CXOs: Digitization at the Core

1. Embed Financing into Every Sales Journey

Financing should no longer be an option customers explore after selecting a vehicle. It must be visible at every touchpoint.

When a buyer configures an EV on an OEM website, instant loan offers should be displayed. When booking a test ride, financing should be pre-approved based on minimal details. Showroom sales staff should have tablet-based tools where EMI options can be demonstrated dynamically.

Ola Electric offers an early example. Its app-based booking journey integrates NBFC loan options, allowing scooters to be purchased with EMIs starting as low as ₹2,000. By embedding financing into the purchase flow, Ola avoided the traditional dealer–bank handoff that often delays conversion.

For CXOs, the takeaway is that financing must be designed as part of the product experience, not as a parallel process.

2. Use AI and Alternative Data for Smarter Credit Scoring

Traditional credit bureau scores exclude a large segment of India’s potential EV buyers, especially in Tier-2/3 cities. Here, digitization can transform access.

Fintechs like KreditBee and RevFin are already using UPI transactions, e-commerce purchase histories, and mobile usage data to evaluate creditworthiness. These models reduce risk perception for first-time borrowers who lack a formal credit trail.

AI underwriting also accelerates approval cycles. Instead of waiting two to three days for manual checks, digital lenders can approve loans in under 10 minutes. For low-ticket E2Ws, this speed is critical. For higher-value EVs, alternative data adds confidence for lenders.

By 2030, OEMs that partner with AI-driven underwriting platforms will be able to finance buyers in semi-urban India at scale, a market currently dominated by informal lending.

3. Make Customer Experience the Differentiator

Digitization is not only about speed. It is about creating a financing experience that builds trust and reduces drop-offs.

Consumers should be able to play with gamified EMI calculators, track loan approval in real time, and receive WhatsApp nudges at key moments. Updates such as “Your loan is 70% approved” or “One click to confirm your eKYC” can reduce abandonment.

For CXOs, this means that financing cannot remain a compliance-driven backend process. It must be reimagined as a customer-facing journey where UX, design, and personalization matter as much as interest rates.

4. Automate the Loan Lifecycle

A truly digital-first ecosystem is not limited to disbursal. It covers the full lifecycle:

• Onboarding: eKYC, Aadhaar-based eSign, and UPI-linked eMandates replace physical paperwork.

• Disbursal: Loans are transferred instantly upon approval.

• Servicing: Customers track repayments on apps with reminders and flexible rescheduling.

• Delinquency management: Predictive analytics flag at-risk accounts before default, enabling proactive interventions.

Such automation reduces operational costs for lenders and creates transparency for consumers. For OEMs, the benefit is a smoother customer experience that reduces friction and boosts sales conversion.

5. Partner with Fintechs and Super Apps

Fintechs are already reshaping India’s lending landscape. For EV financing, they offer distribution and underwriting capabilities that banks alone cannot.

Partnerships with fintechs enable OEMs to reach younger, digital-first buyers. For example, some NBFCs are embedding EV loan journeys inside ride-hailing and delivery apps, allowing gig workers to finance scooters seamlessly.

Super apps like Paytm could also emerge as gateways for EV loans, particularly in Tier-2/3 markets. Embedding EV finance inside apps already used for payments, shopping, and travel expands reach at low cost.

For CXOs, fintech partnerships are not optional. They are the bridge between OEMs and India’s next 100 million EV customers.

Beyond Digitization: The Supporting Levers

Residual Value Guarantees

Digitization can improve credit access, but resale uncertainty remains a barrier. European models show how OEM-backed residual value guarantees and digital battery health certificates can reduce lender anxiety. Indian OEMs should begin piloting such programs by 2026.

Captive or JV Finance Arms

Tesla Finance and BYD Finance highlight the advantage of OEM-controlled lending arms. Indian OEMs like Tata or Mahindra can explore digital-native captive arms or joint ventures with banks. This reduces dependency on NBFCs and creates consistent financing experiences.

Expanding Beyond Metros

Semi-urban and rural adoption will drive the bulk of EV growth post-2027. OEMs should collaborate with microfinance institutions, cooperative banks, and fintech underwriters to bring EV financing to these markets. Digital-first onboarding will be essential for scale.

Aligning with ESG Capital

Green bonds and ESG-linked securitisation will become mainstream. Lenders who digitize their loan portfolios will be better positioned to attract cheaper global capital. For CXOs, aligning finance operations with sustainability reporting is not just good PR it lowers the cost of credit for customers.

Case Studies

Tata Motors–SBI
Tata partnered with SBI to launch EV-specific loans with up to 100% funding. While the model was still partly manual, it showed how OEM–bank collaboration can expand credit availability. The next step is digitization of this flow end-to-end.

Ola Electric
Ola integrated loan applications directly into its booking app, supported by NBFCs like RevFin. This created a frictionless digital journey, especially effective for younger buyers in Tier-2 cities.

BYD Finance (China)
BYD’s captive finance arm built digital-first leasing and loan products, helping it scale adoption in multiple global markets. Indian OEMs can learn from this approach to integrate finance into the brand experience.

Risks CXOs Must Manage

Digitization brings scale, but it also creates new risks.

• Cybersecurity threats in digital loan platforms.

• Algorithmic bias in AI-based credit scoring, which could exclude certain demographics.

• Overdependence on subsidies while digitization matures.

• Regulatory hurdles in approving BNPL and leasing products.

A robust governance framework is necessary to ensure that digitization does not create new systemic vulnerabilities.

Conclusion: Finance as a Digital Growth Engine

Between 2025 and 2030, EV adoption in India will be decided not by how fast batteries fall in cost, but by how effectively financing is digitized.

For CXOs, the message is unambiguous: financing is no longer a post-sale process managed by dealers and NBFCs. It is a digital growth engine that must be embedded into the product, the brand, and the customer journey.

OEMs that design seamless, AI-driven, digitally embedded financing ecosystems will not just sell more EVs they will own the trust and loyalty of the next generation of buyers. Those who treat financing as an afterthought will struggle to convert demand into sales.

The window to act is short. The next five years will decide whether financing remains India’s bottleneck or becomes its competitive edge in global EV leadership.

FAQs

Q1.How much does EV adoption cost in India?

Ans. The adoption scenario is considerable. Between 2020 and 2030, the estimated cumulative capital cost of the country’s EV transition will be INR19.7 lakh crore (USD266 billion)

Q2.How are FinTechs transforming EV financing?

Ans. FinTechs are taking a bold leap forward in EV financing by offering solutions that facilitate the easy transition to EVs and support the rising demand. What FinTechs bring to the EV financing landscape is speed, ease, and seamless access to working capital financing.

Q3.Why are banks apprehensive about financing EVs?

Ans. Banks are cautious about financing EVs owing to product risk in addition to the general credit risk. Much of the lenders' apprehensions are driven by the nascent stage of the EV sector and the lack of stability.