(16 January 2024 – Australia) Green loans for electric vehicles (EVs) are surging as CFOs and treasurers increasingly make the switch to energy efficient equipment.
CBA recorded a 235 percent increase in business loans for EVs year-on-year as high energy costs underpinned a surge in demand for EVs, solar panels and batteries.
Banks are competing hard to promote their green credentials in the push to attain net-zero emissions by 2050. Tesla is one of the most popular EV brands with CBA and Tesla partnering to offer discounted rates specifically for Tesla customers, supporting the transition to EVs.
According to new East & Partners research commissioned by CBA, 40 percent of companies expect to use EVs or hybrids in the next 6-12 months, up from 14.7 per cent today. Looking beyond 2024, that figure is projected to more than double again.
The number of EV charging stations is also racing to keep up with demand, jumping 72 percent in the past year with 800 stations housing 2000 fast plugs nationally. Despite the promising growth, much more needs to be done to support underlying EV demand.
“Businesses are bringing forward purchases to take advantage of government incentives. Electric vehicles were the fastest growing vehicle type last financial year and Australian businesses are set to play an outsized role in EV adoption across the country” commented CBA Asset Finance General Manager, Chris Moldrich.
“EV usage is growing strongly as the market matures and becomes more affordable. That’s helped by government concessions and an expanding choice of vehicles beyond luxury models.”