How is Rural India stepping for Cleaner Mobility with EVs?

Sunil, staying in the countryside, used to travel daily to his college for 15 km up and down. His father decided to buy a two-wheeler for him to save his time. One of his friends advised him to go for an Electric Vehicle (EV) as it is more economical over a longer period of time.

They decided to explore the option of taking a two-wheeler loan. However, in the process of exploring the loan products available, they were surprised to find out how rural India has embraced clean and green technology by opting to purchase an EV rather than the traditional fuel-run vehicles.

Let’s understand how the mindsets in rural India are diverting towards EVs.

1. Government initiatives

As transportation is one of the major factors causing global warming, the Government imposes a strong emphasis on the use of energy-efficient vehicles. Some important initiatives taken by the Government are the introduction of the scrappage policy for old vehicles and providing incentives to manufacturers of EVs

The Government further encourages individuals in the form of an income tax deduction, i.e. an individual taxpayer can get a deduction of Rs. 150,000/- under section 80EEB on the interest paid on a bike loan if the bike is an EV.

The government has also reduced the GST rate of EVs from 12% to 5%. In some states, EVs are exempted from Road Tax & registration costs, which leads to a huge reduction in the purchase price of EVs.

2. Energy efficient

An EV plays an important role in combating environmental pollution across the globe by cutting down the emissions and reducing the dependence on fuels. In rural parts of India, the use of EVs is emerging because of easy battery charging through solar panels, energy storage options and contributing towards environmental sustainability. The EV can prevent the next power outage. Its huge battery is a backup source of energy and can power your home whenever needed. You can learn more on Dcbel website.

EVs run and convert most of the electricity into energy. Today, electricity in rural areas is mostly generated through solar power, wind power, and hydropower, which are environment-saving energy sources.

3. Low maintenance

Electric motors require less maintenance compared to a combustion engine. They are also quieter and run more smoothly.

4. No fuel costs

Fuel rates are at an all-time high. The rising fuel prices often cause a dent in the pockets of middle-class families. Besides, the unpredictability of agricultural produce coupled with the rising fuel prices often leads to financial planning going haywire for small families.

Since EVs do not require petrol or diesel, families can plan their monthly finances with certainty. This is one of the crucial factors which has led to the penetration of EVs in the rural markets of India.

5. Convenient charging

In rural areas, people prefer using solar energy in most of their electrical equipment at home. Solar energy provides hassle-free battery charging in the case of power cuts in smaller towns.

6. Finance inclusion in rural areas

The banks and specified NBFCs (Non-Banking Financial Companies) have rapidly increased their credit offerings in the rural areas and tier-2 / tier 3 cities.

Lenders are coming up with loans on Two/Three/Four-wheeler EVs. Your two-wheeler loan eligibility depends on various factors such as the model you choose among the range of E-Vehicles, the collateral offered, tenure of the loan etc. You can use a two-wheeler loan EMI calculator to check your EMIs for different interest rates and tenure.


When looking at the benefits of electric vehicles you will see all of them are cleaner and an environment–friendly way to travel. That is why the Government introduces policies to gradually convert all vehicles into EVs for protecting our environment. Social awareness has reached rural India too and individuals and families are willing to contribute their bit towards environmental protection.

The ease in the availability of a two-wheeler loan buying an EV is also an important factor providing an impetus to the growth of EVs in such areas in India.

So, what do you do in your everyday life to save the planet? Maybe, purchase an electric vehicle.

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