Owning a car was once a luxury and fast became a necessity for millions. However, today for many it has become like a white elephant that is difficult to maintain, especially due to the growing fuel prices and import duty costs. Therefore, the need for a better sustainable alternative was paramount. Enter EVs! The EV market not only in India but across the world is fast becoming the dominant segment in the auto sector. But there are still a few apprehensions regarding the benefits of owning EVs among many. Given here is a brief discussion highlighting them that can help consumers understand the product better.
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Pros of owning an EV
EV (Electric Vehicles) can be broadly classified into various segments like passenger vehicles, commercial vehicles, 4-wheelers, 2-wheelers, buses, and autos. There are various auto giants like Tata Motors, Mahindra and Mahindra, TVS Motors, MG Motors, Bajaj Auto, Hero Electric, and new age companies like Ather Energy and Ola Electric that are dominating the Indian markets. Some of the key benefits of owning an electric vehicle are mentioned below.
Cost savings
One of the top features of having Electric vehicles (EVs) is the significant cost savings in the long run as compared to gasoline-powered vehicles. These cost savings can be seen in various ways, some of which are mentioned hereunder.
- Lower fuel costs
Fuel costs are one of the biggest expenses for an average household today on account of the growing fuel prices in recent times. Eliminating these costs is one of the biggest benefits provided by EVs. Also, the cost of electricity is generally cheaper than fuel costs, so one has significant savings on this front through EVs.
- Fewer maintenance costs
EVs are built on the latest technologies and also have fewer moving parts as compared to ICE vehicles. These vehicles have lower operating costs and are cheaper to maintain in the long run. The direct impact of this is seen in the lower maintenance costs.
- Potential incentives and tax credits
Many countries including India offers incentives as well as other benefits like tax credits to consumers for the purchase of electric vehicle. These benefits translate into a reduction in the upfront cost of buying an EV.
- Reduced environmental impact
The most obvious and most talked about benefit of EVs is the environmental impact that they have through zero emissions. At a lower estimate, approximately 20% – 30% of the pollution can be attributed to vehicular emissions. EVs can help reduce the environmental impact of transportation.
- Potential resale value
The EV market is constantly increasing and becoming more popular. Therefore, there is a strong possibility that they may hold their value better in the used car market.
Government incentives for owning EVs in India
The Indian government has implemented several incentives to promote the adoption of electric vehicles (EVs) in the Indian markets. These incentives include
FAME India Scheme
FAME stands for Faster Adoption and Manufacturing of Hybrid and is a national-level scheme in the nature of a subsidy program providing financial incentives to purchase EVs and set up charging infrastructure.
Income tax benefits
Under the Income Tax Act, individuals and businesses that purchase EVs can claim a tax deduction of up to INR 1.5 lakhs under section 80EEB of the Income Tax Act, 1961. The deduction is for the interest paid on the loan taken to purchase the EV. This is a direct benefit in the hands of the EV owners.
Reduced road tax and registration fees
The registration fees and renewal fees for EVs across the country have been waived from August 2021. The Road Tax (also known as Vehicle Excise Duty) is exempt for Pure battery eclectic vehicles till April 2025.
Exemption from permit requirements
Some states in the country provide exemptions to electric vehicles and vehicles running on ethanol and methanol from the need to obtain permits to operate in certain areas or during certain times.
Reduced electricity tariffs
Furthermore, some states also offer concessions in the form of reduced electricity tariffs for EV charging. This is part of the government incentives to encourage their use and presence in the auto segment in India.
Preferential parking
EVs are also given preferential parking in certain cities, such as reserved parking spaces or reduced parking fees.
Environmental benefits of owning EV
Environmental benefits as mentioned above, are one of the key features of owning EVs. Some of these benefits are mentioned hereunder.
- Reduced air pollution
EVs provide zero tailpipe emissions, which implies that they do not contribute to air pollution while driving. This can help in improving the air quality in urban areas ultimately benefiting the citizens.
- Reduced emissions of greenhouse gases
EVs are much more energy-efficient than traditional ICE vehicles. This results in fewer greenhouse gas emissions over their lifetime. The process of producing electricity to power EVs is also generally less polluting than the production of fuel.
- Reduced fossil fuels dependency
EVs are powered by electricity, which can be generated from a variety of sources which also include renewable energy sources such as solar or wind power. EVs can therefore reduce dependency on fossil fuels and thereby reduce their overall demand ultimately benefiting the trade deficit.
- The quiet and smooth operations of EV
Electric vehicles (EVs) are known for their quiet and smooth operations as they do not have an internal combustion engine (ICE). EVs use electric motors to power the vehicle and they tend to be quieter and smoother as compared to a gasoline engine. This can help in reducing noise pollution in urban areas. As EVs have fewer moving parts as well, they contribute to their smooth operations. Moreover, the acceleration of an EV is quite consistent and often more linear as compared to ICE cars, which further contributes to a smoother ride. These features help in reducing overall noise pollution, especially in urban areas, and make drivings a more pleasant experience.
Conclusion
There was a time when there were very few EVs on the road but now every 4th vehicle that we see is an EV. This increased market share of the segment is attributed to the increased awareness of consumers to the perils of ICE vehicles and the damage they cause to the environment. The above details of the benefits of EVs will further help consumers choose EVs over traditional gasoline engines.
FAQs
Some of the prime limitations of buying EVs are the higher purchase cost as compared to traditional vehicles available in similar segments, EVs take a long time to recharge and are usually not suitable on every terrain on a single charge
Consumers can get a deduction of Rs. 1,50,000 under section 80EEB of the Income Tax Act, 1961 on the interest to be paid on loans taken for the purchase of EVs
The top names in providing charging infrastructure in India are Tata Power, Charge Zone, Ather Energy, Charzer, Hero Motocop, and Statiq.
The fossil fuels that are used to run ICE vehicles are limited and fast depleting from the world. EVs, on the other hand, are run on the latest technologies and are constantly adapting and improving to be better. Hence, these vehicles are considered to be the future. Governments across the world too are therefore adopting many changes and developing infrastructure to meet the future needs of EVs and EV consumers.
