Electric vehicles have gained immense popularity due to their numerous advantages in recent times. In 2023, the Indian automotive market witnessed a significant shift towards cleaner and more sustainable transportation options.
The encouragement for this transition stems from technological advancements and government incentives and policies, which attracted several electric vehicle manufacturers to enter the Indian market, offering a diverse range of electric vehicles.
According to an article published by Fortune Business Insights, the electric vehicle market in India will reach a staggering value of USD 113.99 billion by 2029. This growth highlights the immense potential and promising future of the Indian electric vehicle industry, which currently holds the fifth position globally and is expected to climb to third place by 2030.
When considering the question of purchasing an electric vehicle, there are several factors to consider. Nevertheless, you must remember a few key points that hold utmost importance before making a decision in 2024.
5 Reasons to Buy an Electric Car in India in 2024
A recent analysis conducted by Deloitte, known as the 2023 Global Automotive Consumer Study, revealed that people interested in purchasing electric cars are not primarily motivated by environmental concerns. Instead, their real motivation is that EV cars are more cost-effective than internal combustion engine (ICE) cars.
The study highlights that the appeal of electric vehicles continues to revolve around the perception that fuel expenses will be significantly lower than ICE cars. This perception outweighs the level of concern people have for climate change.
Accordingly, other factors also come into play, such as a better driving experience, reduced maintenance requirements compared to ICE cars, and the ability to utilize the vehicle as a power source. Surprisingly, the concern for climate change ranks fifth on their list of priorities.
#1 Rising Cost of Petrol and Diesel
Studies conducted by car manufacturers such as Tata Motors and MG Motor India, both of which have a range of electric cars, have shown that the running cost of an electric vehicle can be as low as Rs 1 per kilometer. In comparison, diesel cars cost around Rs 4 per kilometer, while petrol cars cost over Rs 5 per kilometer. This significant difference in running costs makes EV cars a more cost-effective option.
India heavily depends on imported fossil fuels, which exposes the country to the volatility of oil prices. Recent years have witnessed a series of remarkable events, notably Russia’s invasion of Ukraine on February 24, 2022, and the Hamas attacks on Israel on October 7, 2023. This year, there is a possibility of witnessing equally extraordinary occurrences, such as the escalation of the Israel-Hamas War, tensions rising between China and Taiwan, and between North Korea and South Korea. All these scenarios bear the risk of sudden price spikes across various sectors. Additionally, there may be other unforeseeable events that could have a similar impact.
Most forecasts from the public and private sectors indicate that global oil prices will rise in 2024. However, the extent of this increase remains uncertain due to widespread geopolitical instability. It is necessary to consider that fossil fuels are non-renewable resources, meaning their depletion is inevitable in the near future. In such a scenario, having an alternative fuel source significantly cheaper than petrol and diesel becomes a compelling reason to invest in an electric car in 2024.
#2 Lower Cost of Maintenance
The lifespan of an electric vehicle battery can vary depending on the specific make and model of the car, as well as the level of maintenance it receives. Generally, electric car batteries are said to last approximately 8 to 10 years.
One advantage of electric vehicles is their low maintenance requirements compared to traditional internal combustion engine (ICE) vehicles. Since EVs do not have a gasoline engine, there is no need for oil changes, valve adjustments, belt replacements, or other associated expenses. Usually, owning an electric vehicle incurs an annual cost of around Rs 1000 to Rs 2000, whereas a petrol variant may require an expenditure of approximately Rs 4,000 to Rs 5,000 per year.
#3 Attractive Government Subsidies
The Indian government, at both the state and central levels, is actively promoting the adoption of electric vehicles by offering attractive subsidies and incentives. These policies include tax incentives, subsidies, and exemptions from some fees and taxes. For instance, individuals who took loans to purchase electric vehicles could avail of a maximum deduction of up to Rs 1.5 lakh annually until March 31, 2023. Consumers can claim this deduction until repaying the loan. Consumers can expect to extend this tax benefit for two more years on loans sanctioned up to March 31, 2025.
Potential electric car buyers must research and understand the current policies and incentives available to them. EV car buyers can leverage these incentives to reduce the overall cost of purchasing and owning an electric car.
One such subsidy is the FAME II scheme (Faster Adoption and Manufacturing of Electric Vehicles), which will end in March 2024. Even so, discussions are on to extend it until a new plan gets enforced.
#4 Green Energy: No Pollution, No Noise
The planet’s fossil fuel resources are limited, and their utilization is causing significant harm to our environment. The toxic emissions from petrol and diesel vehicles have long-term detrimental effects on public health. In contrast, EV cars have a much lower emissions impact compared to their petrol or diesel counterparts.
EVs produce zero tailpipe emissions, thus benefiting from reducing harmful pollutants. By utilizing renewable energy sources to charge your EV, you can further contribute to minimizing your carbon footprint.
EVs are designed with simplicity, featuring fewer moving parts and uncomplicated controls, making them easy to operate. Furthermore, EVs operate quietly, reducing the noise levels typically associated with fuel-powered vehicles.
Since the electric motor of an EV operates within a closed circuit, it does not release any harmful gases. Moreover, pure electric cars eliminate the need for petrol or diesel, which benefits the environment.
#5 Battery Capacity and Range: A Key Consideration for EV Buyers
When contemplating the purchase of a new electric vehicle (EV), one of the foremost concerns for customers is the battery capacity and driving range. In India, the battery capacity of EVs has historically been a point of contention. Initially, electric cars were unable to offer sufficient battery capacity and range. However, manufacturers have made significant progress in this regard over time.
Currently, EV cars in India boast a minimum battery pack capacity of 26 kWh, enabling them to cover 315 km/charge. These figures pertain specifically to the Tata Tigor EV. On the other hand, the MG Comet India’s affordable EV car offers an impressive ARAI-certified range of 230 Km and a battery capacity of 17.3 kWh.
It is worth noting that manufacturers typically provide the ARAI(Automotive Research Association of India) claimed range for their models, which may differ significantly from the actual range experienced in real-world driving conditions. Therefore, we strongly advise prospective EV buyers to consider the real-world range before choosing.
Should You Invest in an Electric Vehicle This Year?
The Indian electric car market in 2024 presents a wide range of options for environmentally conscious consumers. It is important to note that the Indian EV market is still in its early stages and continuously evolving. Both new automakers and established manufacturers are consistently introducing improved versions of electric vehicles.
Over the next two years, approximately 49 electric cars will be launched in India, including MUVs, SUVs, sedans, hatchbacks, luxury cars, coupes, pickup trucks, and convertibles.
In the next three months alone, 14 EV cars will storm the market, such as Maruti Suzuki’s eVX, Tata Harrier EV, Tata Punch EV, Tata Curvv EV, Kia EV9, and more. Research and development teams are actively working on innovative approaches and fresh concepts to enhance the sustainable travel experience for owners. It is crucial to make a well-informed purchase based on your specific requirements and actively contribute to the future of electric mobility in India. Whether you are a daily commuter or a passionate automobile enthusiast, electric vehicles are undoubtedly the next big thing in the automobile industry.