What Do Electric Vehicles Spell for India?

With the rapid depletion of fossil fuel reserves and the harmful impact of industrial emissions on the climate, the world is heading towards a greener future. The increasing awareness for conserving and protecting non-renewable resources has led many industries across the globe to develop alternatives that are economically and environmentally viable. The automotive industry has already begun to do its bit by launching electric vehicles (EV).

Electric vehicles are lauded for being environmentally friendly against fuel-powered vehicles as they run on an electric motor and require charged electric batteries to function. They do not harm the environment by emitting hazardous emissions. The  Society of Motor Manufacturers and Traders (SMMT) shows that electric vehicle sales are rapidly accelerating with a 236.4% rise as of September 2019. The demand for electric vehicles in India has increased rapidly in the last few years and according  to German data tracker Statista, by 2025, the annual passenger car sales in India will be 6.7 million.

Transitioning  to electric cars is an appealing prospect for India because it addresses several problems the country is facing. Air pollution is a huge problem in India as the State  of India’s Environment (SoE) Report 2019 attributes air pollution as the cause of 12.5 percent of all deaths in the country. It is also responsible for the death of one lakh children under the age of five every year. Furthermore, it reduces the lifespan of newborn babies by an average of two years and six months. India is home to six of the ten most polluted cities in the world, with its capital New Delhi being home to the worst air quality and pollution levels in the country.  

Electric  vehicles are a solution to rising air pollution as they improve air quality and reduce carbon emissions. According to a study in the Northwestern University in the US, electric vehicles can have a net positive impact on air quality and public health. This is why the  Delhi government aims to make the city of Delhi as the ‘EV Capital of India’ by registering at least five lakh EVs in Delhi in the next five years. The EV policy of the Delhi government incentivises car owners to switch to electric cars as those who buy an electric car will be exempted from paying road tax (which is currently four to ten percent of the cost of the vehicle) and registration fee (approximately Rs. 3000). 

The  National Electric Mobility Mission Plan (NEMMP) 2020 launched by the Government of India for faster adoption of electric vehicles in India and the development of infrastructure and manufacturing in the country. The FAME scheme under this policy has sparked an interest in many automobile manufacturers in India, who have begun production and launch of electric cars in the country. The new Tata electric car was unveiled in December 2019 and other automobile manufacturers have also begun productions.

In  a quest towards a sustainable future, the government has also announced a tax deduction up to Rs 1.5 lakh on interest paid on loans taken for the purchase of an electric vehicle in India under Section 80EEB, as well as slashing the GST rate on EVs from 12% to 5%. Electric  vehicles are known to be more energy efficient as they can convert over 77% of the electrical energy from the grid to power the vehicle, as compared to conventional fuel-driven vehicles that can only convert about 12%–30% of the energy stored in the fuel for propelling the vehicle. As  per a NITI Aayog proposal, India wishes to switch completely to electric vehicles by 2030, since it could help the country save 64% of energy demand for road transport and cut down carbon emissions by 37%.

Although car ownership is known to be a status symbol in India, there are around 20 cars for every thousand people in the country. This is because most people do not want to invest in cars as they believe they have to shell on high maintenance and repair costs. However, electric  cars have 75-80% fewer moving components than traditional fuel-powered cars, which translates to lower maintenance bills, as there is less wear and tear in the parts, making electric cars safe to drive. 

Electric vehicles are crucial for the growth of the economy as it could curb substantial dependence on fuel imports. The  country’s oil imports reached an all-time high of 84% in 2018-19, of which 47% was consumed by the transport sector alone. Electric vehicles are 75-80% cheaper from fuel because it is cheaper to charge a battery as compared to stopping the car to refuel now and then. The  new Tata electric car, Tata Nexon EV explains to consumers how economical it is for car owners if they switch to electric cars, thereby saving nearly Rs. 6,00,000 in eight years.

Apart from being cost-effective, electric cars are safer and easier to drive than conventional cars. They are known to be quieter while driving and with a good, fully charged battery, they can last longer and perform efficiently. Thus, it seems like investing in an electric car is a viable option in the long run.

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