In today’s time, governments all over the world are encouraging the electric vehicle (EV) industry through various regulations and incentives to meet the consumer demand for low-emission commuting instead of the fossil fuel-driven vehicles that are endangering our planet.
Initial EVs launched in India were available at a very high initial cost, low speed, smaller battery with lower range due to which the industry the industry could not take off. However, the last 10 years have seen a breakthrough within the EV segment. There has been a rise in universal interest among original equipment manufacturers (OEMs), governments and customers resulting in the EV manufacturing domain witnessing lump sum investments being made, resulting in millions of vehicles getting sold across countries.
The path towards EVs in India
The path towards a bright future of EV in India is slowly being paved. According to NITI Ayog, by 2030, nearly 80 per cent of two- and three-wheelers, 40 per cent of buses, and nearly 70 per cent of cars in India will be EVs. As the nation gears towards its 'zero-emission' 2070 dream, funds and focus are being directed towards electric mobility.
Innovative business models such as battery swapping have emerged to enable widespread EV adoption. Battery swapping model improves issues of long charging time, range anxiety, high upfront cost and battery reliability concerns for EV owners. To make this model workable, the operator needs to ensure standardisation of batteries and operate in a closed loop environment.
There are several reasons as to why the electric vehicles are all set to lead the space in the times to come. Explained below are some of the reasons:
Eco-friendly savings on CO2 emissions
Shifting gears to electric mobility will help India save nearly one giga tonne of carbon dioxide emissions by 2030. Even those buying cars are ready to do their bit for the environment by switching to EVs that will eventually help reducing environmental hazards to a great extent. This acts as a great initiative toward boosting public health by reducing ecological damage. Lesser the exhaustion of harmful emissions, better the air quality will be, which eventually implies fewer health problems.
Significant cost savings on maintenance and running
Maintenance and running costs form a major part of ownership in terms of vehicles are much less as EVs are quite economical in terms of fuel costs and have fewer moving parts thus less costly to maintain.
Offers incredible driving experience
Interestingly, EVs come without gears that often ensures an excellent driving experience without any complicated controls. It’s just brake, accelerator and steer to manage and enjoy a convenient drive with much better accelerations, higher wheel torque and efficiency. Noise-free drive is yet another advantage of electric vehicles. Studies have proven that too much of noise emitted from vehicles can end up impacting individuals in a negative way – such as anxiety, high blood pressure and even increased chances of heart attacks. Needless to say, that when it comes to electric vehicles, such issues are far and few in between.
Additional tax benefits
It might come as a surprise to many, but leasing to buying an EV can help you offer tax benefits. For example, if you have an electric vehicle registered in your company’s name, you are eligible to avail 40 percent depreciation in the first year to save on income tax. The government is also supporting the cause or the idea of buying electric vehicle and has launched an EV policy under which you can avail yourself of additional benefits of up to Rs 1.5 lakh.
The way forward
The Indian automobile industry is already in the fifth position globally and it is anticipated to become the third biggest by 2030. According to the India Energy Storage Alliance, the EV market in India is expected to develop at a compounded annual growth rate (CAGR) of 36 per cent. As India’s population grows and demand for automobiles increases, reliance on conventional energy supplies is no longer a viable option, as the country imports over 80 per cent of its crude oil.
The Indian government has also been working towards promoting the use of EVs in the times to come. All major Indian and global OEMs have not only invested, but also launched EVs and a large number of brand new OEMs have attracted substantial investment along with the launching of successful models, creating demand for EVs thereby creating unicorns too.
The writer, Sunil Gandhi, is the CEO at JLNPhenix Energy
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