New Delhi [India], September 30: India’s electric vehicle (EV) market is experiencing rapid growth, driven by government support, eco-friendly goals, and advancements in new technology. By 2030, the country aims to have around 80 million EVs on its roads, backed by ambitious sales targets across cars, buses, and two and three-wheelers.
With the ‘Make in India’ initiative promoting domestic production, EVs are set to transform mobility in India. Therefore, car owners must understand the implications of this shift in terms of opportunities and responsibilities.
Continue reading to learn why electric cars are gaining popularity and understand other key details that owners should know.
Why are Electric Cars Becoming Popular in India?
Electric cars are gaining momentum in India due to the following reasons:
- Rising Fuel Prices
With fuel costs climbing steadily, many drivers are seeking cost-effective alternatives. Compared to conventional vehicles, electric cars have significantly lower operating expenses, making them a more economical choice for everyday travel.
- Advancements in EV Technology
Improvements in battery performance, range, and charging infrastructure have boosted consumer confidence. Modern EVs also come with advanced features that enhance efficiency and convenience, encouraging more people to make the switch.
- Environmental Concerns
Increasing air pollution levels in Indian cities have made electric cars an economic alternative to petrol and diesel vehicles. Since they cause far less pollution, EVs contribute to cleaner air and healthier living conditions.
- Lower Operating Costs
Electric cars require less maintenance and run without expensive fuel, reducing long-term ownership costs. This financial advantage, combined with growing environmental awareness, is driving more urban buyers towards EVs.
- Urbanisation and Congestion
EVs provide a viable solution as cities continue to become overcrowded and the traffic situation deteriorates. Compact electric cars and two-wheelers help ease congestion while reducing urban pollution, making them practical for city commuting.
- Awareness Campaigns
Public campaigns and educational initiatives have raised awareness of the environmental and financial benefits of EVs. This has helped shift consumer perception, particularly among eco-conscious and cost-sensitive buyers.
- Supportive Government Policies
Forward-thinking policies that provide incentives to manufacturers, offer financial support to buyers, and mandate the adoption of electric public transport have created a favourable environment for EV growth in India.
- Improved Battery Technology
Breakthroughs in battery design, such as higher energy capacity, faster charging, and longer lifespan, have addressed major barriers to EV adoption. As batteries become cheaper and more reliable, electric cars are becoming a practical option for a larger segment of consumers.
Government Initiatives Taken to Promote Electric Vehicles in India
Here are some of the key government initiatives introduced to encourage the adoption of electric vehicles in India:
- The Faster Adoption and Manufacturing of Electric Vehicles (FAME) Phase II provides financial support to both manufacturers and buyers of EVs. This includes subsidies, tax concessions, easier financing options, and exemptions from registration charges and road tax.
- Under the National Mission on Transformative Mobility and Battery Storage (NMTMBS), India is working towards establishing large-scale battery manufacturing facilities to build a strong ecosystem for EV adoption.
- The National Electric Mobility Mission Plan (NEMMP) set an ambitious target of selling 6–7 million hybrid and electric vehicles each year from 2020 onwards, with financial incentives to drive adoption.
- The Vehicle Scrappage Policy provides incentives for discarding old vehicles while promoting the purchase of new electric models.
- The Production Linked Incentive (PLI) scheme offers monetary rewards to companies producing EV components and vehicles, encouraging local manufacturing.
- The Go Electric campaign was launched to raise awareness about the benefits of electric mobility and the availability of charging infrastructure.
- As per the Ministry of Power’s revised charging infrastructure guidelines, charging stations must be installed at intervals of every 25 km on highways and every 3 km in cities.
- Additionally, the Ministry of Housing and Urban Affairs updated the Model Building Bye-laws, 2016 (MBBL), requiring that 20% of parking spaces in residential and commercial complexes be reserved for EV charging facilities.
What to Consider Before Buying an Electric Car in India?
The following are essential points electric car owners have to consider before buying an electric car in India:
- Assessing Range Requirements
Range is one of the most crucial aspects of an electric vehicle, as it determines how far you can travel on a single charge. Modern EVs typically offer between 150 and 400 miles. Consider your daily routine — if you often take long journeys, a higher-range model is essential, whereas for shorter commutes, a modest range may suffice.
- Charging Infrastructure
Investigate the availability of charging stations both in your city and along your usual routes. Familiarise yourself with the 3 main types: Level 1 (standard household socket), Level 2 (dedicated home charger), and DC fast chargers, which can provide a substantial range within minutes.
- Charging Time
The time needed to recharge depends on the charger type and the vehicle. A Level 1 charger may take up to 24 hours, while a Level 2 charger typically requires 4 to 8 hours. DC fast chargers can power up to 80% in around half an hour, though this varies between models.
- Overall Cost of Ownership
Although EVs often cost more upfront than petrol cars, their long-term running costs are lower. They require less maintenance and offer considerable savings on fuel. Calculating these expenses gives you a clearer picture of the actual investment.
- Electric Car Insurance
Insurance costs for EVs can differ from those of conventional vehicles. Since electric cars involve advanced components, they require specialised expertise. This makes electric car insurance an important safeguard, ensuring your vehicle is protected against risks unique to EVs, such as battery damage or electrical faults.
Considering a broader policy, such as comprehensive car insurance, can provide an additional layer of security. Unlike third-party coverage, it protects your EV against accidental damage, natural disasters, and theft, making it a well-rounded choice.
- Battery Longevity and Warranty
Batteries are central to EV performance, and most manufacturers provide warranties covering 8 years or up to 100,000 miles. However, degradation rates differ between models. A longer warranty offers peace of mind about your purchase.
- Comparing Models with Test Drives
Every EV delivers a unique driving experience. Try out multiple models to evaluate performance, handling, cabin comfort, and driving ergonomics before finalising your choice.
- Variety of Options
The EV market in India is expanding rapidly, encompassing a range of vehicles from compact city cars to family SUVs and sporty models. Define your requirements before choosing a vehicle that matches your lifestyle.
- Technology and Features
Look for cars equipped with modern tech such as over-the-air updates, advanced driver assistance, smartphone connectivity, and navigation that maps charging stations. These features add safety and convenience to daily driving.
- Resale Value
As the market matures, resale prices of EVs may fluctuate. Some brands retain value better than others, so it is worth researching historical resale trends to safeguard your long-term investment.
- Maintenance Requirements
Although EVs need less servicing than petrol or diesel cars, they are not completely maintenance-free. Tyres, brakes, and coolant require regular checks. Factor these expenses into your budget for ownership.
Electric cars are becoming a fast-emerging reality. With government incentives, improving technology, and growing consumer awareness, EVs are reshaping the way people travel.
For buyers, understanding the above-mentioned factors is essential to making an informed choice. By carefully evaluating these aspects, owners can reap the financial, environmental, and lifestyle benefits associated with electric car ownership.
