Standard Chartered and Tata Motors join forces to finance EV dealers
In a significant move to support India’s burgeoning electric vehicle (EV) industry, Standard Chartered Bank, India has announced a partnership with Tata Motors, the country’s foremost automobile manufacturer. This collaboration is aimed at offering specialized Supply Chain Finance Solutions to dealers of Tata Motors’ passenger electric vehicles.
The agreement, formalized through a Memorandum of Understanding (MoU), will allow Standard Chartered Bank to provide additional credit limits to these dealers, exclusively for the acquisition of EVs from Tata Motors via Tata Passenger Electric Mobility Limited (TPEML). This initiative expands upon the bank’s existing inventory funding limits which currently benefit the Internal Combustion Engine (ICE) dealerships of Tata Motors, encompassing both Passenger and Commercial Vehicle divisions.
Tata Motors holds a dominant position in the Indian 4-wheeler EV market with a commanding market share of over 73%. The funding solution offered by Standard Chartered Bank is poised to enhance the company’s drive to accelerate EV adoption across the nation and offer its dealers necessary financial access for their EV operations.
Standard Chartered Bank Supports Tata Motors EV Dealers with New Financial Solutions. Photo courtesy of Tata Motors.
Ankur Khurana, Managing Director & Co-Head, Client Coverage, India, at Standard Chartered Bank, emphasized the significance of this partnership, stating, “We are excited to extend our supply chain offering to the high growth EV business of Tata Motors. This augurs well for our strategy to support sustainable industries, and is yet another testimony of our long-standing engagement with Tata Motors and the Tata Group, which spans over many decades and represents one of our most valued relationships globally.”
Dhiman Gupta, Chief Financial Officer at Tata Passenger Electric Mobility Ltd. and Director at Tata Motors Passenger Vehicles Ltd, expressed optimism about the collaboration, saying, “The EV customers today expect a differentiated experience at various touch points in their ownership journey with the brand. As leaders of the 4-wheeler EV space, we are committed to working with the right partners to further grow the market. We are happy to partner with Standard Chartered Bank to further assist our authorised passenger electric vehicle dealer partners with an exclusive financing program. We are confident that this partnership will prove beneficial for all parties as we continue to expand our presence in this space.”
This strategic partnership not only cements the commitment of both Standard Chartered Bank and Tata Motors to the advancement of the EV sector but also serves as a cornerstone for sustainable industry practices and the financial empowerment of automotive dealers in India.