The rise of electric vehicles has become significant. This is because the focus is now more on alternative energy sources and reducing carbon emissions than ever before as a result of global warming and climate change. After the launch of Electric Vehicles (EVs), the automotive industry is one significant sector that is speeding up its move towards green energy. The major companies in the automotive industry are spending billions on EVs as the future of the business, and governments are pushing EVs through framing numerous policies, such as providing incentives to consumers. The increased adoption of EVs appears to be the next big automotive revolution after the internal combustion engine. Do these indications that there may be a demand for EVs in the near future make them a wise investment?
Current Status of Electric Vehicles in India
The electric vehicle market has witnessed a rise in recent months. In comparison to the 322,871 units sold in CY2021, the 999,949 EVs sold in CY2022 indicate a huge 210% year-over-year gain. The majority of the increase is being attributed to the two- and three-wheeler segments, which are known as the “close to the bottom peaches” of the EV industry. Because they are less expensive than the electric passenger or commercial vehicle classes, they are the key factors driving EV sales.
The domestic electric car market in India would increase at a 94.4 percent compound annual growth rate (CAGR) between the years 2022 to 2030, reaching 10 million sales annually, predicts the Economic Survey 2023. Furthermore, it is predicted that 50 million direct and indirect employment would be created by the electric vehicle sector by 2030.
Future of Electric Vehicles in India
Despite the difficulties, there are signs that India’s future in transportation may involve electric vehicles. A number of manufacturers have declared intentions to introduce electric vehicles in the upcoming years, and the government has set a goal of replacing 30% of all vehicles with them by 2030.
The growing attention India is giving to renewable energy is another encouraging development. By 2022, the government aims at installing 175 GW of renewable energy capacity, and by 2030, it wants to have 450 GW installed. As a result, electric vehicles will have a smaller carbon footprint and become more environmentally friendly forms of transportation.
In the 2023- 24 Union Budget, Finance Minister Nirmala Sitharaman suggested allocating INR 35,000 crore for large capital investments aimed at achieving the switch to renewable energy and net-zero goals by 2070. The government will support Battery Energy Storage Systems with a capacity of 4,000 MWH, she added, by providing scalability gap finance. Electric vehicle manufacturers (PLI) have previously had access to two government programmes: the Production Linked Incentive Scheme and the Faster Adoption of Manufacturing of Electric Vehicles Scheme-II (FAME-II).
Further, for the nation’s electric car sector, the finding of 5.9 million tonnes of lithium deposits in the Indian state of Jammu and Kashmir is a significant milestone. India now imports a significant amount of the lithium it needs since it is a necessary ingredient in the manufacture of batteries used in electric car batteries. The finding of these deposits is anticipated to greatly lessen India’s reliance on imports and increase the accessibility and affordability of electric cars for the general public.
Reasons Why Rise of Electric Vehicles in India can Be the next big thing
Here are some of the reasons why the rise of electric vehicles in India can be the next big thing:
Save cost and require less maintenance: It is well known that EV users spend less on petrol and diesel as the vehicles are easily chargeable. Furthermore, the parts can less moving and therefore, require less maintenance. This makes it easier to maintain. Running and maintenance costs are a significant portion of the ownership cost of any vehicle.
The parts that might go down and need maintenance are quite few in EVs. As a result, replenishing the engine oil is not a big deal. This makes it easier and less expensive to maintain electric cars.
Oil causes a range of problems since it is still a key source of energy and is necessary for transportation. With an electric vehicle, the travel becomes more effective and sustainable. As the number of electric vehicles on the road increases, the future need for millions of barrels of oil will decrease.
Convenient charging: In spite of using fossil fuels like petrol or diesel, electric vehicles charge their batteries using electricity. It will be much easier for consumers to charge the batteries at a local station rather than stand in queue at the CNG stations or fuel pumps since more EV battery charging stations are now emerging. The EV owners also have the option to charge their batteries at home using charging equipment.
Environmentally friendly CO2 emissions reductions: Switching to electric mobility would allow India to reduce CO2 emissions by around one gigatonne by 2030. Every electric vehicle on the road helps to reduce dangerous air pollution for future generations. Everyone on the planet is fighting global warming and catastrophic climate change, which is intensifying international disagreements and political tensions. Customers are ready to protect the environment by converting to electric cars (EVs), which have no exhaustible emissions such as petrol and will ultimately help save our ecosystem from pollution and climate change.
This is an excellent concept for reducing environmental impact and improving public health. Reduced depletion of dangerous chemicals will result in improved air quality and fewer health consequences.
Tax advantages
You may be able to save money on taxes if you buy or lease an EV. If you register an electric car in your company’s name, you can use the 40% first-year depreciation allowance to minimize your income tax. The government supports your decision to buy an electric car and has already implemented an EV policy that allows you to up to Rs 1.5 lakh in additional benefits.
Amazing driving experience by lowering stress/driver fatigue
As electric cars do not have gears, due to this, optimum driving conditions and simple controls are guaranteed. To control and enjoy a quiet, easy, safe, and noise-free ride, just accelerate, brake, and steer.
Another benefit of driving an electric vehicle is less noise. Electric motors are incredibly quiet when compared to internal combustion engines and their exhaust systems. Numerous studies have shown that vehicle noise can lead to an increase in anxiety, depression, high blood pressure, heart problems, stroke, and other illnesses. Noise pollution may also increase the occurrence of severe depressive symptoms in persons.
Advantages of Electric Vehicles
Here are a few advantages of electric vehicles:
- Low Maintenance Cost: Vehicles that run on gasoline or diesel require periodic maintenance since they have multiple moving parts. That is not the case with electric vehicles since they have considerably fewer moving parts. This means that your electric vehicle’s maintenance costs will most likely decrease over time.
- Improved efficiency: EVs were formerly considered to be impossible to build. That has changed over time, as manufacturers deliver appealing, well-designed EVs. Even the performance of electric vehicles has increased. Electric vehicles are lighter and accelerate faster than gasoline-powered automobiles.
- Reduced daily expenses: EV useras actually save a lot of money on fuel since you don’t have to pay for gasoline or diesel to keep your EV running. When compared to the expense of petrol or diesel, the charging cost of an electric vehicle is far cheaper. Using renewable energy sources, such as solar, can allow you to reduce your electricity expenses even more.
- Fiscal and tax advantages: India has embraced the usage of electric vehicles, and the government has put in place a variety of regulations and incentives to encourage their use. In terms of registration and road tax, for example, EVs are less expensive to purchase than ICE vehicles.
- Convenience of home charging: To fill up on fuel, there is no need to locate the closest gas station. Start moving and charge your EV at home. With modern charging technologies, you can quickly charge an EV or even use battery-swapping services to continue driving without being concerned about the availability of conventional gasoline.
- Large cabin with additional storage: Electric cars provide us with the possibility of converting these compartments into storage and provide more interior space because they have fewer moving parts. Since the traditional ICE is no longer present, you may also locate storage places beneath the hood. In comparison to cars fueled by fuel, electric vehicle motors and batteries do not occupy much space.
- Job Creation and Technological Advances: The development and acceptance of EVs have sparked improvements in battery technology, electric drivetrains, and charging infrastructure. These developments have wider use outside the automobile industry, such as energy storage for renewable energy sources and grid stability. Jobs and innovation are generated by electric mobility in the charging infrastructure, renewable energy, and battery manufacturing industries.
- Energy diversification and Security: By lowering reliance on oil imports, EVs promote energy diversification. Since a variety of energy sources, including renewables like solar and wind, may be used to power the electricity grid, electric vehicles (EVs) present a chance to transition transportation toward cleaner and more sustainable energy sources. Minimizing reliance on imported fossil fuels, improves energy security and lessens sensitivity to changes in oil prices.
- Driving is simple and quiet: EVs are easy to run and have fewer moving parts, making them easy to drive. You may also charge a car like this at home or at a public charging station. Furthermore, they are silent, which reduces the noise levels produced by gasoline-powered vehicles.
Disadvantages of Electric Vehicles
Following are the challenges of disadvantages that customers might face with EVs:
- Range anxiety: It is the dread or worry that one may run out of battery power while driving. The adoption of EVs is significantly hampered by their short driving range. Even if EV ranges have increased, many people still believe that they may not have enough range for long-distance travel, especially in a nation with enormous expanses like India. The range of EVs might decrease as a result of the batteries’ deterioration over time.
- Limited Model Options: Compared to conventional automobiles, electric vehicle models are currently less common in India. To meet the demands and interests of consumers, the market needs more alternatives across a number of sectors, including reasonably priced EVs.
- High Initial Cost: Compared to conventional automobiles, buying an electric car has a greater initial cost. Demand for EVs is constrained by their high initial cost, which renders them unaffordable for many prospective purchasers. The pricey battery technology utilized in EVs is largely to blame for this price gap.
- Limited Charging Infrastructure: In India, the infrastructure for charging electric vehicles is currently under construction and is mostly found in large cities. For EV users, especially those who live in flats or don’t have designated parking places, the lack of a strong and extensive charging network is troublesome.
- Battery Technology and Supply Chain: Specific minerals and rare earth elements are needed for the creation of lithium-ion batteries, which are an essential part of EVs. India now relies significantly on imports to manufacture batteries, which presents difficulties in the supply chain. Compared to traditional cars, electric vehicles require more time to recharge, which reduces their utility and convenience.
Initiatives taken by the Government for the Promotion of Electric Vehicles in India
Below are a few of the government initiatives that aim to promote the consumption of electric vehicles in India:
- The Faster Adoption and Manufacturing of Electric Vehicles (FAME) Scheme II offers financial incentives to both EV producers and consumers. Subsidies, tax breaks, preferred funding, and exemptions from road tax and registration fees are a few examples of these incentives.
- The National Electric Mobility Mission Plan (NEMMP) aims to sell 6-7 million hybrid and electric vehicles annually starting in 2020 by offering financial incentives.
- Giga-scale battery manufacturing facilities are to be established in India as part of the National Mission on Transformative Mobility and Battery Storage, which aims to provide a complete ecosystem for the adoption of EVs.
- The Production Linked Incentive (PLI) program offers financial incentives to companies that make parts and automobiles for electric vehicles.
- The Vehicle Scrappage Policy, which offers incentives for both the purchase of new electric vehicles and the scrapping of used cars.
- The Go Electric campaign seeks to increase public knowledge of the advantages of EVs and the EV charging network.
- India is one of the few countries that backs the worldwide EV30@30 project, which aims to have at least 30% of new electric vehicle sales by 2030.
- According to the Ministry of Power’s[1] updated rules on charging infrastructure (MoP rules), there must be at least one charging station located on both sides of the roadways every 25 km and every 3 km.
- Additionally, the Model Building Bye-laws, 2016 (MBBL) have been modified by the Ministry of Housing and Urban Affairs to require that 20% of the parking spaces in both residential and commercial buildings be set aside for EV charging stations.
Conclusion
Electric Vehicles are the future of the country. As per various recent surveys, it is clear that the market of EVs will increase to many folds by 2030 with more production. People will eventually start shifting to electric vehicles looking at the advantages and government-launched schemes. Therefore, the rise of electric vehicles can be the next big thing and therefore, it can be the future of the world. EVs will not only help in cost-cutting, but they will also reduce the amount of air pollution in the country. Therefore, looking at the present benefits of electric vehicles, it can be concluded that the EV market will certainly grow in the coming years.
Frequently asked questions (FAQs)
Between the late 1990s and 2010, practically all major automakers were experimenting in some fashion with electric vehicles, whether it was through hybrids or fully electric vehicles.
The first electric vehicle was a three-wheeler with the name VIKRAM SAFA that was created in 1996 by Scooter’s India Pvt Ltd. 400 automobiles total were produced and sold.
The first electric car, a specifically designed contemporary electric automobile from one of the industry’s major manufacturers, General Motors, debuted in 1996 with the EV1.
EVs were created in the late 1800s, but Tesla was the first contemporary electric vehicle to use lithium-ion batteries and to achieve widespread popularity.
The nation’s dedication to decreasing carbon emissions and battling climate change has been a major factor in the swift acceptance of EVs; as a result, it has offered numerous regulations to foster the expansion of the EV sector.
The Indian government has taken a number of actions to encourage the manufacture and use of hybrid and electric cars in the nation. The government has introduced programs to address the problem of vehicle emissions and lessen reliance on fossil fuels.
The nation’s dedication to decreasing carbon emissions and battling climate change has been a major factor in the swift acceptance of EVs; as a result, it has offered numerous regulations to foster the expansion of the EV sector.
The Indian government has taken a number of actions to encourage the manufacture and use of hybrid and electric cars in the nation. The government has introduced programs to address the problem of vehicle emissions and lessen reliance on fossil fuels.
According to the Economic Survey 2023, the domestic electric vehicle industry in India will develop at a 49 per cent annual compound growth rate (CAGR) in the years 2022 to 2030. This will reach to 10 million sales every year by that point. Additionally, it is anticipated that the electric car market will generate 50 million new jobs.
Under the ‘Make in India’ program, India wants to become a centre for the production of electric vehicles (EVs). To promote local manufacturing, the government has introduced programs like FAME India and PLI programs.
Analysts claim that a $1.3 billion government initiative to promote EV manufacture in the nation and offer discounts to consumers is one reason why the industry is expanding. Sales are also increasing as a result of rising gasoline prices over the previous ten years and customer knowledge of the long-term financial advantages.
Outside of the three major countries, sales of electric vehicles are typically modest, although the IEA said that there are encouraging indicators in developing nations like India and Indonesia. It also stated that considerable growth in EV sales was anticipated until 2023 as a result of more readily available, reasonably priced models and enhanced regulatory backing.
The global market for future electric vehicle technologies is expected to expand at a CAGR of 21.7%. The number of units is expected to rise from 8.1 million to 39.21 million by 2030. This rapid growth is driven by a lot of factors, including environmental concerns.
In 2050, EVs will account for more than 75 per cent of all vehicle miles travelled, and more than 45 per cent of their recharging power will be zero-emission. There were just nine electric car alternatives with a minimum range of 400 kilometres (249 miles) available internationally five years ago.
India will reduce its CO2 emissions by one gigatonne by 2030 by switching to EVs. This accomplishment will result in less air pollution in metro areas and small metro areas, which will maintain the health of current and future generations.
Read Our Article: Government Initiatives For Electric Vehicles In India
