EV adoption is no longer just about technology — it’s about financing. While customers weigh affordability and dealers juggle working capital, lenders remain cautious, slowing down momentum across the value chain. Thin credit histories, uncertain resale values, and a weak secondary market for repossessed EVs all contribute to a financing gap that limits adoption.
At the same time, Tier 2 and 3 cities hold the key to real scale. But for these markets to open up, financing must be accessible, transparent, and seamlessly built into the sales journey. This is where digital dealer platforms can transform how OEMs, financiers, and dealers work together.
To understand how, we spoke with Dhiraj Agrawal, Chief Business Officer at Mufin Greens, who has over two decades of experience in financial services, including leadership roles at top NBFCs. With a deep background in auto finance, channel management, and distribution, he explains what it will take to make EV financing scalable and sustainable.
Keep on reading to know his insights!
Q1. You’ve worked extensively in auto finance across OEMs and NBFCs. From your perspective, what’s the biggest challenge today in EV financing for dealers and customers?
The biggest challenge lies in balancing risk for both dealers and customers. For customers, especially first-time borrowers and gig workers, affordable loans are hard to access due to thin credit histories and uncertainty around EV residual values — particularly battery life and resale.
For dealers, the challenge is liquidity and working capital. Floor financing and structured credit support remain underdeveloped, while the weak secondary market for repossessed EVs keeps lenders cautious. Together, these issues create a financing gap that slows adoption.
Q2. Tier 2 and 3 cities are critical for EV adoption. How can digital dealer platforms support financing penetration and make credit more accessible in these markets?
Tier 2 and 3 cities are where EV adoption can truly scale, but credit access remains a barrier. Digital dealer platforms can bridge this by embedding lending workflows into the sales process — from instant credit checks using alternative data, to digital KYC, e-agreements, and real-time loan approvals.
For dealers, having a single platform that connects them to multiple NBFCs and banks improves financing penetration and shortens turnaround times. For customers with thin credit histories, AI-driven underwriting and cash-flow-based scoring can make loans more inclusive, unlocking demand in smaller cities where EVs can deliver maximum impact.
Q3. Fragmented data often slow collaboration between OEMs, dealers, and lenders. What role do you see for real-time dealer data in speeding up approvals and building trust?
Real-time dealer data can be a game changer. Today, fragmented or delayed information makes lenders cautious and slows approvals.
Suppose OEMs, dealers, and financiers operate on a shared digital layer where inventory, sales, customer profiles, and repayment performance are updated in real time. In that case, it creates transparency and trust across the value chain. For lenders, this reduces risk perception and accelerates approvals; for dealers, it improves working capital flows; and for OEMs, it ensures faster market penetration. Ultimately, real-time data turns financing into a proactive enabler of EV adoption.
Q4. With your experience in channel and distribution management, what’s one capability next-gen dealer systems must have to align financing with dealer sales and aftersales workflows?
Next-gen dealer systems need an integrated financing layer that connects sales, aftersales, and credit workflows. Financing should not be a separate step — it should be embedded within the dealer’s CRM and service processes.
This means eligibility checks, digital documentation, and repayment tracking happen as part of the ownership journey. For dealers, this gives visibility across the lifecycle; for lenders, stronger risk control; and for customers, a smoother experience from purchase to resale.
Q5. Looking ahead, do you believe AI-driven dealer management systems can help balance growth, credit risk, and customer experience in EV financing?
Yes. AI-driven dealer systems can bridge growth, credit risk, and customer experience. By analysing sales patterns, customer behaviour, and repayment data in real time, AI can flag early risk signals while still enabling faster approvals.
It can also personalise loan terms for different customer segments, automate compliance checks, and predict resale values to support more innovative underwriting. For dealers, this means stronger working capital cycles; for lenders, sharper risk management; and for customers, a financing journey that’s smoother and more transparent. Done right, AI moves financing from reactive risk control to proactive growth.
– Dhiraj Agrawal, Chief Business Officer, Mufin Greens
Wrapping Up
As Dhiraj Agrawal points out, EV financing is the backbone of adoption — but it needs to evolve. Dealers need liquidity support, customers need accessible loans, and lenders need real-time visibility. Digital platforms can address all three by embedding credit workflows into sales, sharing data transparently, and leveraging AI for predictive underwriting.
For India’s Tier 2 and 3 markets, especially, this integration could unlock scale. The shift is clear: financing must stop being a bottleneck and start becoming a growth driver. With stronger digital systems, OEMs, dealers, and financiers can move from risk-averse caution to sustainable, scalable EV adoption.
About The Expert
With more than 20 years of experience, including 18 years in financial services, Dhiraj Agrawal brings deep expertise in auto finance, business development, and distribution. He has held leadership roles at SMFG India, Manappuram Finance, Home Credit, TVS Credit, and Bussan Auto Finance, where he built and scaled lending businesses across Tier 2 and 3 cities.At Mufin Greens, he focuses on building innovative EV financing solutions and enabling OEM–dealer partnerships to make adoption scalable. Known for his ability to combine market insight with execution, he is widely regarded as an expert in EV finance and dealer ecosystem growth.
