YOUNG, GREEN, AND ON THE MOVE: EV FINANCING TRENDS AMONG GEN Z

• Publish on Jul 07, 2025
• Read Time 5 mins

If there’s one generation shifting gears in the Indian mobility space, it’s Gen Z. Born between 1997 and 2012, this group has now entered its earning and decision-making years. And we appreciate how they’re acting toward climate anxiety, tech savviness, and financial pragmatism in tow.

From e-scooters to electric hatchbacks, Gen Z is steadily improving India’s EV adoption. But how exactly are they funding these green drives? And what’s changing in the EV financing space to support them?

So what’s driving this electric buzz among Gen Z?

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

• Eco-Conscious Values: A survey by Deloitte (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 Bajaj score.

A Change in Financing Behaviour

Unlike millennials, Gen Z isn’t obsessed with owning 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.

   Curious how much your monthly outgoing might be?

   Try Ecofy’s EMI calculator to get an estimate based on your loan amount and tenure—it could be more affordable than you think.

2. Digital NBFCs > Traditional Banks

   New-age NBFCs, such as Ecofy, can offer customized EV loans even to new to credit customers, 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.

Challenges Young Buyers Still Face with EV Loans

Despite the push, GenZ still faces setbacks when financing EVs.

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.

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 history?

   Yes. Some lenders use alternative data to approve EV loans for first-time borrowers.

2. Are EV subsidies available for Gen Z buyers?

   Yes. FAME II 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.