Non-banking financial services company Shriram Finance has secured a $150 million loan from the Asian Development Bank (ADB) to enhance access to finance for electric vehicles (EVs) and low-emission commercial vehicles in India.

The funding is part of a larger $306 million financing package, which includes an additional $150 million from the Japan International Cooperation Agency (JICA) and ₹500 million (~$5.83 million) from the Export-Import Bank in India.

The initiative aims to support India’s transition to sustainable transportation by increasing the adoption of EVs and Bharat Stage VI-compliant vehicles for business purposes.

The financing agreement aligns with the Indian government’s EV30@30 initiative, which aims to achieve 30% of all new vehicle sales to be electric by 2030.

The funding will enable Shriram Finance to expand its EV financing operations, particularly benefiting businesses in rural and semi-urban areas.

Shriram Finance has assets under management of ₹2.54 trillion (~$29.60 billion).

ADB Country Director for India Mio Oka said partnering with Shriram Finance will accelerate the transition to electric mobility, which is crucial for reducing air pollution and achieving India’s climate goals.

EV sales in India reached a record 1.95 million units in 2024, representing a 27% increase from the 1.53 million units sold in 2023. EVs accounted for 3.6% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard.

In October 2024, ADB approved a $434.25 million loan to increase renewable energy capacity and improve energy security in Assam. The loan will fund a 500 MW solar project integrated with a battery energy storage system.

In the same month, ADB invested $25 million in a certified climate bond issue by Vivriti Capital. The proceeds will be used to finance companies operating in sectors such as electric vehicles, solar and wind energy, and waste management.