This report, prepared in collaboration with OMI, is part of a series of reports on 'Roadmap for Future Mobility 2030'
The report stated, "vehicle financing for electric vehicles remains a challenge. It is therefore necessary to offer alternatives that can help adjust costs and bring electric vehicles ( EV) equal to the cost of internal combustion engine models".
The report also called for the introduction of a ‘scrappage ’ policy, which is based on the need to remove expired vehicles (ELV).
The report, titled "Roadmap for Future Mobility 2030" recommends the establishment of a "first loss" fund mechanism to facilitate increased lending for the purchase of electric vehicles (EVs).
First loss refers to a type of funding arrangement wherein a capital provider allocates to a separately managed account traded by the manager. The manager is required to provide investment capital of 10-20 per cent of the total managed account, which is usually matched by the first loss capital provider.
The "first loss" mechanism is almost systematically used in the Insurance world and in the context of Securitisation.
Mobility as a Service (MaaS) - focussed strategies should prioritize seamless integration and offer multiple options to consumers to encourage the adoption of shared mobility, said the report.
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