Battery numbers for EVs to be included in registration certificates? Fraudulent activities lead the Finance Industry Development Council to urge the government to prevent further losses.
The Finance Industry Development Council (FIDC), which represents non-bank lenders in India, has written to Union Transport Minister Nitin Gadkari to address fraudulent activities involving electric vehicles (EVs).
In their letter, the FIDC recommended that the battery number be included in the registration certificate for EVs.
Fraudsters in Bengaluru have been exploiting the financing system for EVs by purchasing them on credit, then selling off the vehicle’s new battery — which can account for over 50% of the vehicle’s total cost.
After replacing the original battery with a used one, they default on the payments and surrender the vehicle. This practice is causing significant losses to financiers, as the vehicles they repossess are worth much less than the amount they financed.
FIDC’s remedy would serve a similar purpose to the chassis and engine numbers, which are currently recorded. It believes that this addition would help prevent the unauthorised sale of batteries.
The letter also suggested that if there is insufficient space on the smart card, the battery number should be made mandatory in place of the engine number. Since electric vehicles do not have traditional engines, the engine number is not applicable.
The inclusion of the battery number in the registration details and database would be an effective step towards safeguarding against fraud in the EV sector.
FIDC director general Mahesh Thakkar mentioned that there has been no update on the matter yet. The group plans to meet with the Ministry of Transport in January to further discuss the proposed recommendations and explore potential solutions to EV financiers’ challenges.
