128
/
3
Min Read
To support the adoption of electric vehicles in India, Axis Bank has been appointed as the preferred financing partner for Tesla. Announced on Wednesday, the partnership will enable customers across the country to access specially designed loans for purchasing Tesla electric vehicles, helping reduce the financial barriers associated with buying premium EVs.
The arrangement will be rolled out nationwide, covering both major metropolitan areas and smaller cities that are emerging as potential EV markets. Under the partnership, Axis Bank will offer dedicated auto loans for premium EV buyers, including customised repayment schedules based on customers’ income, loan tenures of up to 10 years, and a fully digital application and approval process.
The extended loan tenure is considered significant in India’s auto financing market, where car loans typically range between five and seven years. A longer repayment period could reduce monthly instalments, making Tesla’s high-priced electric vehicles more accessible to a wider group of buyers.
Munish Sharda, Executive Director at Axis Bank, said the collaboration aims to simplify the cost and process of purchasing a Tesla. He noted that as electric mobility gains momentum in India, the partnership would help customers adopt sustainable mobility in a convenient and flexible manner.
Tesla entered the Indian market in 2025 after years of regulatory discussions and negotiations related to import duties. The company initially launched sales of its Tesla Model Y in select cities and has gradually been expanding its retail and service network across the country. However, high import duties on fully built vehicles have kept Tesla’s prices significantly higher than those of domestic EV manufacturers, making financing options an important factor for buyers.
India’s EV sector has witnessed steady growth in recent years, supported by government initiatives such as the FAME Scheme and rising investments in charging infrastructure. While adoption has been strong in two-wheelers and three-wheelers, the premium passenger car segment — where Tesla competes — has grown at a slower pace.
Axis Bank is one of India’s largest private sector banks. As of September 2025, it operated 5,976 domestic branches and 13,177 ATMs and cash recycler machines across the country. The bank provides financial services across retail, corporate, SME, and agricultural segments, with group entities including Axis Mutual Fund, Axis Securities, Axis Finance, and Freecharge.
Industry experts believe that such partnerships between banks and automakers can play a key role in making electric vehicles more accessible and accelerating the growth of India’s EV market.
