Axis Bank, one of the largest private sector banks in India, in partnership with GuarantCo, part of the Private Infrastructure Development Group (PIDG), has extended an INR 1 billion (around USD 12 million) guarantee to Muthoot Capital, one of India's fastest-growing NBFCs in India. This will empower the NBFC to lend to on-lend customers in rural and non-metro regions in India, for purchasing electric two-wheelers.

GuarantCo has provided a 65 percent on-demand credit guarantee to Axis Bank for this transaction, which is part of a broader USD 200 million electric vehicle (EV) framework agreement signed by GuarantCo and Axis Bank. This framework was established to enable mobilisation of funds between USD 300 and 400 million for financing the e-mobility ecosystem in India.

This collaboration with Muthoot Capital will focus specifically on providing transport solutions to rural and non-metro regions that predominantly consist of lower-income populations that have historically been underserved. The transaction will benefit Indian companies operating within the EV ecosystem with over INR 800 million (around USD 10 million) and is expected to impact local businesses in the supply chain, such as equipment manufacturers, vehicle dealers and insurers.

The INR 1 billion EV transaction will increase electric two- and three-wheeler vehicle provision, contributing to SDG 9.4 (Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies) and SDG 11.2 (Provide access to safe, affordable, accessible and sustainable transport systems for all).

This is GuarantCo and Axis Bank’s third transaction under the EV framework agreement. In December 2023, it had first enabled an INR 2.5 billion (around USD 30 million) loan to Vivriti Capital for supporting the company’s expansion strategy in the e-mobility ecosystem of India, and subsequently extended INR 1 billion (around USD 12 million) loan to Everest Fleet for the purchase of electric cars to be deployed as low pollution emitting taxis in India.

Rajiv Anand, Deputy MD, Axis Bank said: “Axis Bank stands committed to support and accelerate the growth of e-mobility industry in India. As one of the leading banks in the country, we are dedicated to driving initiatives that create positive environmental and social impact. By promoting the adoption of electric vehicles, we are working to reduce emissions, enhance air quality and provide affordable and accessible transport solutions nationwide. We have proactively scaled up our partnerships and engagements with EV dealers, manufacturers, and other players and will continue to do so. This collaboration not only supports the development of green infrastructure in India but also aligns with our broader vision of fostering an inclusive future where sustainable practices benefit all segments of society.’’

Mathews Markose, CEO, Muthoot Capital said: “Partnering with GuarantCo marks a significant step forward in accelerating the adoption of electric vehicles and advancing sustainable transport solutions in our country especially in the rural and semi-urban markets. This funding will enable MCSL to provide innovative and tailor-made financing options aimed at making electric vehicles more accessible and affordable to a wide range of consumers and businesses. We look forward to enabling the common man to own their own two-wheeler ensuring affordability and convenience. This will lend wings to our slated objective of growing our EV by 200 crores during FY2025.”

Layth Al-Falaki, CEO, GuarantCo said: “We are delighted to have closed the transaction with Muthoot Capital under the Electric Vehicle framework guarantee agreement that we signed with Axis Bank in May 2022.  This is the third transaction that we have closed under the agreement which after the ones that we closed with Vivriti Capital and Everest Fleet now total INR 4.5 billion (c. USD 54 million). This is also the first transaction under the framework which will cover the demand side of the EV business through the provision of credit so that customers can purchase electric vehicles.  In addition, the transaction is expected to have a market transformation effect that we hope that it will help catalyse deployment of more electric vehicles in India. GuarantCo, through the Private Infrastructure Development Group, will continue to utilise the climate mitigation guarantee with Axis Bank to further the e-mobility ecosystem in India and to deliver against our climate action aims aligned with the PIDG 2030 strategy.”

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Kia India, a leading passenger vehicle manufacturer, has launched the Carens Clavis EV, its first electric vehicle manufactured in India at INR 1.79 million with the 42kWh battery pack option.

The Carens Clavis EV offers two battery options – 42kWh with a claimed 404km ARAI-certified range and 51.4kWh with a claimed 490km ARAI-certified range. Both batteries pair with 99kW or 126kW motor options, delivering 255Nm torque. The 51.4kWh variant achieves 0-100 kmph in 8.4 seconds.

Fast charging capability allows 10 percent to 80 percent charge in 39 minutes with a 100kW DC charger. The battery pack has IP67 certification for dust and water resistance and a liquid-cooled thermal management system. It also features Vehicle-to-Load (V2L) capability.

Inside, the Carens Clavis EV includes a 67.62 cm (26.62-inch) Dual Panoramic Display Panel. Other features include one-touch electric tumble for second-row seats, a ‘Boss Mode’ for second-row legroom, a Bose sound system, 64-colour ambient lighting and ventilated front seats.

The vehicle incorporates paddle shifters for four levels of regenerative braking, including an i-Pedal mode for one-pedal driving. An ‘Auto Mode’ selects the optimal regeneration level.

The Carens Clavis EV integrates ADAS Level 2 with over 20 autonomous functions, such as Smart Cruise Control with Stop & Go, Lane Keeping Assist and Front Collision-Avoidance Assist. Additional safety features include six airbags, Electronic Stability Control (ESC), Hill Start Assist Control (HAC) and all-wheel disc brakes.

For connectivity, the vehicle offers 90 connected features, including charging status monitoring, charge limit settings and energy consumption details.

Kia India provides a comprehensive EV ownership ecosystem. The K-Charge platform on the MyKia app accesses over 11,000 charging points nationwide. The company supports ownership with over 250 EV-ready workshops and more than 100 dealerships with DC fast chargers.

The Carens Clavis EV is available in four variants: HTK Plus, HTX, ER HTX and ER HTX Plus and six colours. Digital services like pre-emptive maintenance alerts, live video consultations and an AI-powered digital owner’s manual enhance after-sales experience.

Gwanggu Lee, Managing Director and CEO, of Kia India, said, “We are committed to leading the future of electric mobility through innovation, sustainability and a deep understanding of evolving consumer needs. Over the years, we have built a strong global EV portfolio and are proud to bring that expertise to India. The Carens Clavis EV represents the next step in this journey. It is built on three core pillars ­— our proven global EV technology, advanced features that simplify the driving experience, and our unique RV philosophy that stands for movement, flexibility, and togetherness. The Kia Carens Clavis EV, India’s first Electric RV, has been thoughtfully built for a nation that moves with ambition and togetherness. Inspired by India, our first made-in India electric vehicle carries forward the idea of ‘E-We’ defining a new way to move.”

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Liberty General Insurance Ltd (LGI) has become one of Tesla’s preferred insurance providers in the country. This partnership will provide Tesla owners with specialised coverage solutions designed specifically for electric vehicles, combining Liberty's insurance expertise with Tesla's cutting-edge automotive technology.

The alliance represents a meeting of minds, with both companies committed to transforming vehicle ownership through smart technology, digital-first services and forward-thinking mobility solutions. Liberty has developed a range of insurance products that not only match Tesla's high-performance standards but also address the specific requirements of EV drivers.

The insurance package includes EV Secure, offering complete protection for charging equipment including cables, connectors and home charging stations. The Battery Secure add-on provides dedicated coverage for battery systems, covering repair and replacement costs to maintain optimal performance throughout the vehicle's lifespan. For emergencies, Liberty Complete Assistance delivers premium 24/7 support services such as mobile charging, specialised EV towing, alternative transportation and accommodation arrangements. Tesla customers can further customise their coverage with optional add-ons like full value protection, tyre and consumables coverage, key replacement, personal item protection and loan payment support during total loss scenarios.

Parag Ved, CEO & Whole-Time Director, Liberty General Insurance Ltd, said, “Tesla’s entry into India represents far more than the arrival of a global automotive icon – it marks the beginning of a new era of mobility. At Liberty, we’re deeply honoured to be among Tesla’s preferred insurance providers for the Indian market. We see this as a moment of transformation, not just in how we drive, but in how we protect, serve, and anticipate the needs of the next generation of motorists. Our EV-specific offerings are not retrofitted; they are thoughtfully engineered from the ground up to complement the electric driving experience. Whether it’s safeguarding high-voltage batteries, offering roadside recharging or simplifying claims through our digital-first platform, we have reimagined insurance for a more intuitive, elevated future. We aim to not only support Tesla customers but also inspire broader adoption of sustainable vehicles by making protection smarter, more adaptive and reassuringly seamless. It’s more than a policy – it’s a commitment to forward motion, with purpose and precision.”

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Vietnamese auto maker VinFast Auto India has announced that it has officially opened bookings for its soon-to-be-launched VF 7 and VF 6 electric SUVs in the country. The EVs can be booked for a refundable amount of INR 21,000, for which the deliveries are set to begin next month. The models will be assembled at the company’s plant in Thoothukudi, Tamil Nadu.

The VF 7 features a spacious interior, Level 2 Advanced Driver Assistance Systems (ADAS), large touchscreen, connected car technologies, panoramic glass roof, wireless charging and signature LED lighting.

On the other hand, the VF 6 positioned as a family SUV, combines comfort with Level 2 ADAS, an intuitive infotainment system, connected features, signature lighting and a panoramic roof.

Pham Sanh Chau, CEO, VinFast Asia, said, “We are deeply encouraged by the overwhelming support from Indian consumers at the Bharat Mobility Global Expo. It reaffirmed the country’s readiness and enthusiasm for sustainable mobility solutions. The VF 6 and VF 7 represent our vision of bringing world-class EVs tailored to local needs, and we’re confident that Indian customers will find these models not only competitive, but truly inspiring.”

The Vietnamese auto maker has been taking rapid strides to establish its presence in the country, be it the recent onboarding of 13 dealer partners, partnering RoadGrid, myTVS and Global Assure to create a reliable, nationwide charging and aftersales service network. Furthermore, it also has partnered with BatX Energies for battery recycling and rare metal recovery.

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Bengaluru-based electric vehicle manufacturer Ola Electric aims to sell 325,000 to 375,000 units, which will translate to revenue of INR 42 billion to INR 47 billion in FY2026. It anticipates its auto business will achieve full-year EBITDA positive status, with gross margins expected to rise to 35-40 percent starting in the second quarter, buoyed by Production Linked Incentive (PLI) benefits.

The optimistic outlook follows a strong performance in Q1 of FY2026, where the company saw significant sequential growth and a key profitability milestone. It sold 68,192 two-wheelers, up 32.7 percent compared to 51,375 units sold in Q4 FY2025. The revenue came at INR 8.28 billion, up 35.5 percent over the previous quarter. Ola Electric claims its auto business achieved EBITDA positive status in June 2025, a significant turnaround from previous quarters. The auto segment's Q1 EBITDA improved sharply to -11.6 percent from -90.6 percent in Q4 FY25. Consolidated EBITDA also saw a substantial recovery to -28.6 percent.

Ola Electric's ‘Project Lakshya,’ a cost optimisation initiative, has driven considerable operational efficiencies. Monthly auto operational expenses have been reduced from INR 1.78 billion to INR 1.05 billion, with a target to further lower consolidated operational expenses to approximately INR 1.30 billion per month through FY26. This focus on efficiency has contributed to a notable improvement in free cash flow, which improved to negative INR 1.07 billion in Q1 from negative INR 4.55 billion in Q4 FY2025.

Product innovation continues to be a key driver, with the newly introduced Gen 3 scooters accounting for 80 percent of total scooter sales in the quarter. These models the company shared have not only improved margins but also led to a significant reduction in warranty claims. The rollout of Ola Electric’s Roadster X motorcycles is also progressing, now available in 200 stores across India and slated for further scaling during the upcoming festive season. Software adoption is also on the rise, with MoveOS+ adoption surging to nearly 50 percent among new customers.

A significant technological leap for Ola Electric is the in-house production of its 4680 Bharat Cell, set to power vehicles starting this Navratri. The company plans to fully utilise its 1.4 GWh capacity by the end of FY2026 and scale it to 5 GWh by FY2027. Furthermore, the company has successfully developed Heavy Rare Earths (HRE) free Motors, scheduled for production deployment in Q3 FY2026. These vertical integration efforts aim to reduce costs, enhance performance, and improve supply chain resilience.

Ola Electric aims to further solidify its position as an industry leader, being the only major EV player currently offering ABS-equipped products (S1 Pro+). The company is also developing its in-house ABS, expected to be production-ready by January 2026, aligning with evolving safety standards.

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