WHY GEN Z LOVES EVS: COST SAVINGS, EMI FLEXIBILITY & ECO-FRIENDLY BENEFITS

• Published on Nov 26, 2025
• Read Time 7 mins
• 

Gen Z is now driving the shift towards green mobility – Electric Vehicles. With rising fuel and diesel prices in India, young Indians are choosing EVs not just to look cool but also for their convenience and affordability and long-term savings. Gen Z also prefers tech-enabled mobility — app-based servicing, GPS-enabled scooters, and smart dashboards — making EVs an easy fit into their digital-first lifestyle.

Beyond sustainability, factors such as better savings habits, smarter investment planning, and the desire for financially secure choices for their future also influence their decision to choose an EV.

Let’s see how they are funding these green drives — and what’s changing in the EV financing space to support them.

Why is Gen Z Choosing EVs?

India’s EV sales touched over 1.5 million units in FY 2023-24, up 40% from the previous year. Two-wheelers, a category heavily influenced by young buyers, accounted for over 55% of these sales. Let’s now see why the EV buzz among Gen Z:

• Eco-Conscious Values: A Deloitte survey (2023) showed that 64% of Gen Z in India are concerned about climate change and want to reduce their carbon footprint.
• Lower Running Costs: Rising fuel prices and the affordability of charging EVs (often under ₹1/km) make them ideal for college students, gig workers, and early professionals.
• Digital-First Ownership: Gen Z prefers online research, app-based servicing, and digital financing, all areas where EV startups like Ather, Ola Electric, and Bounce score.

How Gen Z Is Financing Their EVs: Key Behaviour Shifts

Unlike millennials, Gen Z don’t believe in owning the assets, but when they do decide to buy, their core decision-making factors are flexibility, low entry costs, and smart repayment options. Here’s how this plays out in the EV space:

1. EMIs Over Upfront Payment

Most electric scooters cost between ₹80,000 and ₹1.5 lakh. Gen Z buyers are taking advantage of zero down payment and low EMI schemes offered by platforms like Ecofy

Try Ecofy’s EMI calculator and see how a ₹1 lakh electric vehicle loan at a 10% interest rate can be paid off in 30-36 months by shelling out approx. ₹3,200-₹3,800 monthly.

2. Digital NBFCs > Traditional Banks

New-age NBFCs, such as Ecofy, can offer customized EV loans even to customers with thin or no credit history, a common situation among young borrowers. Their tech-first underwriting models assess social and behavioural data while allowing Gen Z gig workers and first-jobbers to qualify with minimal paperwork.

3. Subscription and Lease Models

Some Gen Z buyers prefer not to own at all. EV leasing startups like Yulu (with its two-wheeler rentals) and Lithion Power are the ones creating opportunities for this shift.

Subscription-based financing (monthly rental + insurance + maintenance) is increasing in availability in cities like Bengaluru, Delhi, and Pune, especially for campus goers and delivery professionals.

Government Push + Gen Z Demand = EV Boom

The FAME II scheme, combined with state-level EV subsidies (₹10,000–₹25,000 in some regions), is continually making EVs more affordable. For instance, students and early professionals in Maharashtra are assured of added benefits by registering EVs in their name.

Add to this the green local initiatives from fintechs and cooperative banks (like SBI Green Car Loan), and you’ll better understand how India’s youngest generation can access EVs.

Challenges Young Buyers Still Face with EV Loans

Even though EVs are becoming more popular and preferred choices for young Indians, GenZ still faces a few roadblocks before making a confident purchase:

Firstly, many first-time earners or freelancers don’t qualify for traditional loans due to an extremely limited credit history. Secondly, only a small percentage of young buyers are aware of EV subsidies, green loans, and buyback programs.

Most importantly, there’s been constant anxiety about charging infrastructure. Particularly for electric cars, buyers in Tier 2 and Tier 3 cities hesitate due to the scarcity of charging stations.

While awareness about state and central EV subsidies is still low among young buyers, several fintechs and NBFCs — including Ecofy — are actively bridging this gap through digital guidance, pre-approved offers, and transparent EMI tools. These solutions help Gen Z understand total cost of ownership, access the right subsidies, and make confident EV purchase decisions.

Verdict

Remember, GenZ has birthed an immense mindset shift with regard to EVs. Their preference for sustainable transport is forcing India’s financing ecosystem to grow. You can expect more credit-lite lending options and bundled packages with loans + insurance + add-on services soon. Even better, get ready to see growth in EV BNPY (Buy Now, Pay Later) models.

Lastly, India’s target of 30% EV penetration by 2030 calls for lenders, OEMs, and policymakers to go greener, faster and smarter.

FAQs

1. Can Gen Z get an EV loan without a credit score or CIBIL history?

Yes. Many digital NBFCs (like Ecofy, RevFin, OTO) use alternative data and tech-based underwriting, so even zero-credit borrowers can qualify

2. Are EV subsidies available for Gen Z buyers?

Yes. PM Drive Scheme and state policies offer ₹10,000–₹25,000 in subsidies on eligible EVs.

3. Can I lease an EV in India?

Yes. Leasing options from OTO, Ather, and others let you use an EV without owning it.

4. How much EMI for an electric scooter?

Most Gen Z buyers pay ₹2,500–₹5,000 per month for 24–36 months, depending on the model and loan.

5. How long does it take to charge an electric scooter?

A standard EV scooter takes 3–5 hours to fully charge at home, while fast-charging options can go from 0–80% in 60–90 minutes.

6. How much can I borrow for an electric scooter or EV loan?

With Ecofy, you can borrow up to 90% of your EV or electric scooter’s cost, depending on subsidies and your Green EMI subscription.