Challenges and Advantages of Electric Vehicles in India
An increase in EVs on the roads has given green mobility new hope in India. It has been fuelling the need for electric car insurance.
As per the information received from Ministry of Road Transport and Highways, over 13,92,265 electric vehicles were running on Indian roads as on 3rdAugust, 2022. Further, sale of EVs in FY 2021-22 has gone up over three times as compared to sale of EVs in FY 2020-21.
All types of vehicles need insurance. So, a higher number of EVs translates into more electric cars obtaining car insurance.
Clearly, customers have become more vocal than ever about their desire to purchase electric automobiles. Some people are even looking at their diesel vehicle’s conversion to an electric car. However, various obstacles still exist, slowing the adoption of EVs’ across the country.
Challenges of electric vehicles in India
- Range fear – Range anxiety may be one of India’s significant obstacles to electric vehicle growth. Customers of EVs can be concerned about the vehicle’s ability to travel from point A to point B before the battery drains. *
This issue could be strongly related to India’s limited charging infrastructure. India’s electric vehicle charging infrastructure might need to be improved compared to gas stations. Additionally, EV charging stations are mostly available only in urban areas.
- Customer perception – In India, the consumer view of electric vehicles might still be inferior to that of Internal Combustion Engine (ICE) automobiles. Lack of charging infrastructure, a big pricing gap between EV and ICE vehicles, and a lack of guarantee regarding decent resale value – all play a significant role in this.
- High price – There might be no price parity between electric and ICE vehicles in India; electric cars could be significantly more expensive than their equivalents driven by conventional fuels. *
This substantial price disparity inhibits many prospective EV consumers from committing to the purchase of an EV. Electric vehicle insurance plans tend to be more expensive than regular car insurance policies, due to the high cost of components used in EVs. *
- Limited battery technology – The lithium-ion battery can be the most commonly utilised energy source for electric vehicles. India does not manufacture lithium. India’s reliance on imports for EV batteries has resulted in sky-high prices for these vital components and EVs themselves. *
- The FAME plan only covers some EVs – Government policies for Electric Vehicles promote electric mobility in the country by offering incentives. The FAME scheme’s terms and criteria do not support most electric vehicles. Low-speed, lead-acid battery-powered electric two-wheelers might not be covered under FAME, discouraging many people from purchasing electric vehicles. *
- Lack of products – There could be only a few options available in the EV category, most of which might not be from reputable, recognised businesses. This causes hindrances in consumers’ choices for an EV.
Advantages of electric vehicles in India
- Low cost of ownership – Numerous studies have demonstrated that EVs have a far lower lifetime cost than fossil fuel-powered vehicles.
- Easier to maintain – A typical internal combustion engine has around 2,000 moving parts. In contrast, the electric motor aboard an EV contains approximately 20 moving parts.
The only significant components of an electric vehicle are said to be the battery and electric motor. This greatly simplifies EV maintenance and reduces their total cost of ownership.
- Government policies – Multiple state administrations in India have already announced their respective EV plans. Some emphasise the demand side, while others advocate the supply side. *
Through incentives, rebates, and other perks, EV policies support both sides. These policies could fuel India’s slow but steady expansion of electric vehicles. *
- Cleaner environment – A cleaner environment would be the most evident and direct benefit of embracing electric mobility. Unlike their internal combustion engine (ICE) rivals, electric vehicles emit no air pollutants. EVs can be silent, in contrast to their noisy counterparts. This means EVs can help in a cleaner and quieter environment.
Now that you have a fair understanding of the challenges and advantages of electric vehicles in India, we would suggest that you do some more research on your own before you book your electric car. And do not forget to buy electric car insurance to cover your prized possession. *
* Standard T&C Apply
‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. ‘