Indian automobile drivers are warming up to the idea of EVs. In August 2021, Tata Nexon EV clocked a monthly sales of 1022 units, which was the first time an electric car in the personal segment recorded a 4-digit sales figure. Moreover, the demand for the EV variant is at par with the Diesel variant for Nexon.
So, clearly there is a shift towards EV ownership, mostly amongst innovators. But what is driving this change? This article tries to answer that.
1. The government subsidies are making electric cars more affordable
Central government through its Faster Adoption and Manufacturing of Hybrid and Electric vehicle (FAME) II policy, (validity extended from March 2022 to March 2024) provides benefits of a maximum of Rs 1.5 lakh (Rs 10,000 per kWh of the battery capacity).
Over and above the FAME II subsidy, various state governments like Delhi, Gujarat, Maharashtra, Karnataka, AP and Telangana are supporting EV adoption by waiving off registration and road tax.
2. Fuel prices are skyrocketing
Petrol and Diesel are at all time highs with an increase of 20% since the year started and with no end in sight to when the prices are going to be decreasing. While EVs are priced at a premium, the increasing fuel prices brings parity to the Total Cost of Ownership. Plus if you are an EV driver, your blood need not rush the next time there is a news bulletin on the increasing fuel charges.
For the uninitiated, read more about TCO here.
3. Low maintenance costs
Adding ‘fuel’ to the fire on the Total Cost of ownership of a vehicle is the maintenance costs. EVs are much cheaper to maintain in comparison to the traditional ICE vehicles. To quote Tony Seba, author and EV evangelist, a typical ICE Engine will have 2000+ moving parts in comparison to an EV with about 18 moving parts. Think about all the money you can save in spares and replacements.
4. Convenient Charging
Compared to an ICE vehicle where you need to rush to the nearest gas station to refill the fuel, with EVs, your fuel is where your vehicle is. Having a level 2 AC charger ‘refuels’ your vehicle fully, in about 6 hours while you park your vehicle at home or at office. Refuelling your vehicle becomes a background activity much like charging your smartphone once you are back from the office.
5. Environment Friendly
Beyond the goodwill you get for having a green vehicle, switching to an EV helps the planet heal from the decades of abuse it has been going through. With 10% of the pollution coming from transport tailpipe emissions, switching to EVs help create a better planet for the generations to come.