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Shriram Finance Secures Rs 1,249.5 Cr ADB Loan to Boost EV Financing in India
Mar 28, 2025
Shriram Finance has secured a Rs1,249.5 crore loan from the Asian Development Bank (ADB) to expand financing for electric vehicles (EVs) and low-emission commercial vehicles in India. The funding is part of a Rs2,549.58 crore package, which includes an additional Rs1,249.5 crore from the Japan International Cooperation Agency (JICA) and Rs50 crore from the Export-Import Bank of India.
The initiative supports India's EV30@30 target, which aims for 30% of all new vehicle sales to be electric by 2030. The financing will help businesses in rural and semi-urban areas access loans for EV adoption, accelerating the country’s shift to sustainable transportation.
Shriram Finance, which manages Rs2,54,000 crore in assets, will use the funds to increase EV financing and encourage Bharat Stage VI-compliant vehicles for business use. ADB Country Director Mio Oka emphasized that the partnership will drive India’s electric mobility transition, helping to reduce air pollution and meet climate goals.
India’s Growing EV Market
- EV sales reached 0.195 crore units in 2024, marking a 27% YoY increase from 1.53 million units in 2023.
- EVs accounted for 3.6% of total automobile sales in 2024, as per the Ministry of Road Transport and Highways’ Vahan Dashboard.
In a separate move, ADB approved a Rs3,777.9 crore loan in October 2024 to fund a 500 MW solar project with battery storage in Assam, highlighting its commitment to India’s clean energy and sustainable mobility goals.