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

• Publish on Jul 06, 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?

Why Gen Z is 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 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.

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, OTO Capital, RevFin, and Paytail.

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 behavioral 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 fintech’s 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

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.