Battery-powered vehicles have gradually managed to have a significant impact on a global scale. India, having the fifth largest automotive market, is not far behind. Pertaining to the fact that the scope of the electric vehicle (EV) market is multidimensional, it is fairly imperative for a country like India to scale up its electric vehicle adoption on a large scale.
As per recent data, around 3,30,000 electric cars were sold in 2021, counting to a steady growth of 168% compared to 2020 sales, a number that is slated to grow multifold in the future. Here is a brief look at the how India’s EV market is projected to perform in the future.
Current Status of the Electric Vehicle Market in India
As per the latest CY21 reports, India’s 2021 electric vehicle sales accounted for a total of 1.1% of the total vehicle sales, which is projected to grow to 39% by 2027.
Parallely, to achieve its zero-emissions goal by 2070, the Government has shifted its attention to developing the infrastructure for electric vehicles. As part of its efforts to increase electric mobility in India, the Government aims to provide incentives for both consumers and manufacturers.
Here’s why there is an ardent need to expedite the investment in the EV and ancillary EV market in India:
- Compared to conventional gasoline-powered vehicles, electric automobiles are more expensive, making them less attractive to customers who are on a budget.
- Several areas in the country lack the infrastructure and equipment needed to set up charging stations.
- Electric vehicles have a lower range than gasoline-powered vehicles, making them less practical for long-distance driving.
By 2030, the Indian automobile market is anticipated to rank third in terms of sales volume. With the non-renewable nature of fossil fuels, there is an urgent need to shift from the traditional gasoline-run automobiles in the coming years.
The Need for Change
Currently, internal combustion engines (ICE) power majority of the automobiles being sold in India. However, there has been a discernible shift in consumer perception during the past few years. The most significant driver of this trend has been the country’s exorbitant spike in fuel prices over the last few years.
Despite a minor decline in price over the past several weeks, the price of crude oil in the global market has breached the $80 per barrel mark. The rising cost of fuel is encouraging owners of ICE vehicles to switch to EVs, which have substantially cheaper operating costs.
Consequently, a report by Lux Research suggests that EV sales in India are projected to overtake ICE vehicle sales between 2035 and 2040, owing to the constant changes in customer preferences, technological advancements, and policy measures.
According to a survey jointly performed by the International Copper Association (ICA) and Alliance for an Energy-Efficient Economy (AEEE), 88.6 % existing ICE owners recognised the advantages of having an EV.
Furthermore, 78.7% of respondents indicated a willingness to transition to an electric two-wheeler in the near future. The poll also captured the main driving forces for the transition to an electric two-wheeler, where environmental and financial savings were at the top of the list of all considerations. A high percentage of responders were also interested in EVs’ silent ride.
Some of the impressive benefits of electric cars include the following:
Greener reductions in carbon dioxide emission
By 2030, switching to sustainable vehicles will enable India to reduce carbon dioxide emissions by around one billion tonnes. An upswing in the electric vehicles on Indian roads can play a huge role in reducing air pollution, helping make a greener planet for our future generations. In the escalating international disputes and political tensions centered around global warming, electric vehicles will ultimately help save the environment from climate change.
Significant reduction in operating and maintenance costs
EVs possess fewer moving components compared to a petrol engine, making maintenance simpler. EVs have a relatively limited number of parts that could malfunction and require maintenance. As a result, replacing the engine oil is not a concern, making it simpler and less expensive to maintain electric vehicles. Additionally, electric cars offer a clean and sustainable mode of transportation with a significant reduction in natural resource consumption in the future.
Sustainable and convenient charging
Rather than relying on fossil fuels like gasoline or diesel to power their batteries, electric cars rely on electricity. With additional EV battery charging stations springing up, consumers will be able to charge their batteries at the nearest station rather than waiting in huge lines at CNG stations or petrol pumps.
Gearless driving experience
Due to the lack of gears in electric vehicles, you get optimum driving experience with simple controls. Simply accelerate, brake, manoeuvre and enjoy a quiet, efficient, safe, and noise-free journey.
Section 80EEB of the IT Act allows for tax deductions of up to Rs. 1,50,000 on interest paid if you get a loan to buy an electric car. Additionally, any registered electric car can save up to 40% tax in the first year, available for both business/corporate and personal purposes, irrespective of prior EV ownership.
Key to Maintaining EVs
Maintenance may be an expensive task for those who own or are considering purchasing an electric car. Comprehensive car insurance plans provide you with protection against the cost of getting your EV repaired and other maintenance costs, but it is equally important to choose the right insurance for your electric car.
Here’s where the Insured Declared Value (IDV) calculator comes in. An IDV calculator will help you identify the IDV of your electric car and calculate the maximum sum that you will receive in case of car theft or total loss. Get your hands on hassle-free car insurance plans with an efficient IDV calculator, and secure your car in the most efficient manner!
The Bottom Line
While the advantages of an EV for consumers and the environment are abundant, India still has a long way to go when it comes to embracing EVs in true sense. A rise in EV manufacturers and focusing on EV ancillary engineering will benefit consumers by improving quality and reliability. As the governing authorities roll out measures to move towards electric mobility, the EV ecosystem in India is expected to grow exponentially over the next few years.