Greaves Cotton Limited has forged a strategic alliance with ACKO, a prominent tech-first insurer, to revolutionise electric vehicle (EV) ownership in India, the company has announced in a media release. The partnership announced recently, marks a significant milestone in Greaves Cotton's commitment to promoting sustainable mobility solutions across the country, they said.
Under this collaboration, Greaves Finance Limited, a wholly-owned subsidiary of Greaves Cotton, will leverage Acko’s expertise in insurance solutions to enhance its 100% EV-focused lending platform, according to the media release. This initiative is designed to streamline the process of acquiring optimal insurance plans and financing options for EV owners, ensuring a seamless experience from purchase to maintenance.
The agreement facilitates cross-selling of Acko’s innovative insurance products through Greaves’ platform, empowering customers with comprehensive financial support tailored specifically for EV ownership, it further said This move underscores Greaves Cotton’s proactive approach to addressing the key challenges hindering widespread EV adoption, such as high initial costs and concerns over battery longevity.
PB Sunil Kumar, Executive Director and CEO of Greaves Finance Limited, emphasised the potential of accessible financing and insurance models in accelerating India’s transition towards sustainable mobility. He highlighted the robust growth of the Electric 2W segment in the fiscal year 2024, affirming the strategic importance of facilitating affordable ownership solutions to drive further market expansion.
In addition to financial benefits, the partnership between Greaves Cotton and ACKO aims to introduce innovative EV-centric insurance products tailored to meet the unique needs of EV users. This initiative is expected to play a pivotal role in reducing the financial implications associated with accidents and hospitalisations, enhancing overall consumer confidence in EV adoption.
According to the media release, financial markets responded positively to the announcement, with Greaves Cotton shares witnessing an intraday surge following the news. As of the latest trading update, Greaves Cotton was trading higher on the National Stock Exchange (NSE), reflecting investor optimism regarding the strategic implications of the partnership with ACKO.
Looking ahead, Greaves Cotton and ACKO are poised to collaborate on further initiatives to enhance the EV ownership ecosystem in India. With a shared commitment to innovation and customer-centric solutions, the partnership is set to redefine standards in the burgeoning EV market, offering tangible benefits to current and prospective EV owners nationwide.
