According with Economics Times Survey details shows the benefits of EV – if you interested to buy a EV then this article is best for you.
A big deciding factor for buying an EV is the price of fuel and running cost.
As year-end discounts by car companies and dealers start to pour in, new buyers are shuffling through a range of decisions. This year, the rising prices of petrol/diesel and high pollution levels in metros
have added one more quandary to the decision basket: Should I buy an electric car? Potential buyers have a million questions: Are electric cars cheaper in the long run? Where and how does one charge the car? Is the charging infrastructure in place? To help such buyers, ET Wealth weighs the pros and cons, and provides a comparison with other fuel cars so that they can take an informed decision. In collaboration with CarDekho.com, we also offer a list of electric cars in the market and those likely to be launched soon.
Growth and prospects of Electric Vehicles
An electric car runs either partially or fully on electric power using energy stored in batteries, while petrol and diesel cars use an internal combustion engine (ICE). Though the electric vehicle (EV) market in India is in a nascent stage, the government’s efforts to improve the infrastructure and offer incentives mean that the share of e-cars is estimated to grow to 12% of passenger cars by 2025-26, according to a report by JMK Research & Analytics. In fact, the registration of new electric passenger cars shot up by 109% year-on-year (y-o-y) and sales registered a 361.78% y-o-y increase in 2020. The government has also launched FAME or Faster Adoption and Manufacturing of (Hybrid and) Electric vehicles, which is currently in Phase II (2019-2022) and includes a slew of financial benefits for consumers and manufacturers. To spread further awareness, the government has also launched a website https://www.eamrit. niti.gov.in/ about EVs.
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The growth prospects notwithstanding, there are several challenges facing the EV segment which heighten the comparison with other fuel cars. “you will need to consider various things before you buy an EV, such as your spending priority,” says Kartikeya Singhee, Group editorial head, Girnarsoft, which runs the website cardekho.com. “since you can buy a bigger car for the price of an EV, you will have to ask yourself if you need a bigger car or is it more important to go green and cover the additional costs with benefits over time,” he adds. to answer these and other questions, consider the pros and cons of e-cars.
Benefits of EV
Lower running cost: A big deciding factor for buying an EV is the price of fuel and running cost. Since EVs use electricity to charge batteries, and domestic power tariffs range from Rs 8-10 per unit, the monthly running cost is a fraction of cost for petrol or diesel. So if your daily commute in Delhi is 30 km, you will end up spending Rs 5,375 a month on petrol, while the cost of charging an EV with battery capacity of 30.2 kWh and range of 312 km, will only be Rs 697 a month at home, even lesser at Rs 392 if you do it at a public charging station. This means that your cost per km for a petrol car with a mileage of around 17 km/litre will be Rs 5.97, but for an EV of 30.2 kWh capacity, it will only be Rs 0.43 per km. The power rate may vary for various states, but it will still be lower compared with petrol or diesel cost.
Lower maintenance cost: The build of an electric car is such that you will end up spending less on servicing and upkeep. “Expect to pay less for maintenance as EVs have fewer moving parts which don’t need as many fresh fluids or filters. For instance, Tata estimates around Rs 25,000 in maintenance over a five year period,” says Singhee. Compare this with a petrol or diesel variant, where you will easily spend Rs 7,000-10,000 a year.
Cleaner environment: A sway factor for many buyers is the zero carbon emission and reduction in air pollution with EVs. While the emission from tailpipes is indeed nil, one also needs to consider the emission at power plants where electricity is generated, especially if it is a coal/fossil fuel-based plant. In effect, the carbon emission for EVs is not zero, but it is still less than that from petrol/diesel cars.
[the_ad id=”64987″]Better performance: According to a US-based website, EV batteries convert 59-62% of energy into vehicle movement, while petrol-run vehicles only convert 17-21%, making EVs more efficient. Besides, EVs are quiet and smooth as there is no exhaust system, providing a good driving experience. They also accelerate instantly, making them responsive with good torque. “Most EVs also offer roomier interiors with flat floors as their powertrains have fewer parts,” says Singhee.
Tax benefits: From assessment year 2020-21, Section 80EEB allows a deduction of Rs 1.5 lakh for interest paid on loan taken for buying EVs. The loan needs to be sanctioned between 1 April 2019 and 31 March 2023 and is allowed only for individual taxpayers or an individual running a business. As per the Budget 2021 proposal, personal vehicles will be levied a ‘green tax’ after 15 years, whereas electric and hybrid vehicles will be exempt. EVs are also exempt from road tax and registration costs in some states like Delhi, while GST has been cut from 12% to 5%. Meanwhile, the ‘Switch Delhi’ campaign in the capital offers a subsidy of Rs 10,000 per kWh to the first 1,000 ecars, with a Rs 1.5 lakh per vehicle cap.
Electric car vs other fuel cars
Here’s how the electric, petrol, diesel and CNG variants of Tata Nexon fare on various parameters.
Sources: Economics Times.
Drawbacks
Higher purchase price: Currently, a big deterrent for buying electric cars is the high upfront cost. Though this can be offset by the low fuel, running and maintenance costs, as well as tax incentives, it is still a deciding factor for many since one can buy a bigger petrol car for the same price.
Lack of infrastructure: Though you can charge the e-car at home, it is cheaper to do so at a public charging station, of which there are very few. Both private and public sector companies have already built station networks and are planning more, but it will take at least five more years to establish a large network. As many as 350 stations have been added under FAME II; Tata has built 1,000 stations and plans 10,000 more in three years; IOCL has 448 EV charging station, and plans to set up 10,000 at its existing fuel stations in three years; and BP is set to establish 7,000 in the next few years.
Longer charging time: While you can get your petrol/diesel car filled within minutes, it will easily take 6-8 hours to charge your car at home. Even with fast chargers and bigger batteries it will take 35-60 minutes to get an 80% charge. LIMITED DRIVE RANGE: Since a single charge provides a driving range of 200-400 km, shortage of public charging stations means electric cars are good only for intra-city drive, not longer car trips.
Fewer options: Today, there are only 4-5 mass market electric cars in India and 5-6 in the luxury segment, with another 5-6 to be launched in the coming year. Though the government incentives to manufacturers is likely to increase their number, for now there is a limited choice for consumers.
Higher insurance cost: EV insurance is costlier than that for petrol cars because electric cars are more expensive due to cutting-edge technology and high-capacity batteries, which raises the IDV. Also, while e-cars have fewer parts, these are more expensive, as are the batteries, which are very costly to repair or replace. While third party insurance rates have been fixed by Irdai at a 15% discount, comprehensive policy rates are much higher and do not offset the discount.
[the_ad id=”64987″]Should you buy?
If the green factor weighs heavily on your mind, pick an EV as the initial high cost of purchase will be offset in a few years. Also, if you are in a metro with public charging stations or can install one at home, buy one. It will, however, make more sense to wait for 2-3 years so that you have a greater choice of cars and a better charging station network.