Future of Electric Vehicles in India

Environmental pollution in India has almost reached the threshold level. According to the Climate Risk Index 2020, India is in the top 5, which means that India is vulnerable to climate change. In such a situation, there is no other option but to adopt e-mobility.

In order to reduce the environmental issues, the Government of India decided to promote Electronic Vehicles (EVs) to reduce pollution.

However, according to a Castrol report, new car owners will not buy electric vehicles until 2030 for a variety of reasons.

Proper infrastructure is one of the important factors. But whatever the cons for using and promoting EVs on Indian roads, the total electric cars on Indian roads will be around 100 million in FY2030, from just half a million in FY2020.

But what are these electric cars or EVs?

More information about electric cars

Electric cars are one of the most recent vehicles to run on electricity instead of specific fuels such as petrol, diesel or CNG.

Batteries in electric cars can be charged for reuse. There are three types of electric vehicles available in India at present. they-

  • fully battery powered electric cars
  • solar powered electric cars
  • Hybrid Electric Cars

Why the future of electric vehicles looks promising in India

Global automakers have been striving hard for decades to find new and sustainable alternatives to fossil fuels. The overall environmental degradation is not a hidden consequence of burning fuel from the world. And now, the need to switch from fuel to other eco-friendly alternatives is greater than ever. The world has now joined hands together and pledged for a carbon-neutral world with zero carbon emissions.

Electric vehicles will be a key player in helping to achieve that goal. Countries such as the UK, France, Norway and Germany have also brought in laws to ban the sale of non-electric vehicles by 2025. This makes the EV industry one of the most exciting, important and essential areas of innovation today.

The global electric vehicle market size is projected to grow from 4,093 thousand units in 2021 to 34,756 thousand units by 2030, growing at a CAGR of 26.8%. India has already shown its keen interest to be a major part of this automotive paradigm shift. With this, India has already aspired to become the largest hub of electric vehicles in the future. Industry leaders see electric cars as a promising option.

In addition to environmental benefits, electric cars have much more to offer. Autonomous driving options, personalized smart assist solutions, 5G embedded next generation technologies, to mention just a few. At a basic level, electric cars offer dramatically lower operating costs than traditional internal combustion engines.

On average, electric vehicles are 75-80% cheaper from a fuel and maintenance standpoint, which ultimately translates into lower maintenance bills. As a result, an important consideration for many consumers with high usage. This reality holds true for all factors as it is significantly cheaper to charge a battery than to refuel in a traditional liquid fuel tank.

India has a lot to gain from the widespread adoption of e-mobility. Under the Make in India programme, manufacturing of e-vehicles and their associated components is expected to increase the share of manufacturing in India’s GDP to 25% by 2022. On the economic front, mass adoption of electric vehicles is expected to help.

Save $60 billion on oil imports by 2030 – Currently, 82% of India’s oil demand is met by imports. The price of electricity as a fuel could drop by up to Rs 1.1 per km, helping an electric vehicle owner save up to Rs. 20,000 for every 5,000 km traveled. Ultimately, electrification will help reduce vehicular emissions, a major contributor to air pollution that causes an average of 3% GDP loss every year, the report suggests.

Future of Electric Vehicles in India
Future of Electric Vehicles in India

history of electric vehicles

The history of the origin of electric vehicles (EVs) dates back to the middle of the 19th century. In 1828, Anyos Jedlik discovered a specific type of electric motor.

He built a small model car that could run on his new motor. Between 1832 and 1839, Scottish explorer Robert Anderson discovered a carriage powered by electricity.

In 1835, Professor Sibrandus Stratting from Groningen, Netherlands, and his assistant Christopher Becker from Germany created a small-scale electric car powered by non-rechargeable primary cells.

Although its origins date back to the 19th century, vehicular land movement arrived around 1900.

Initially, the speed of electric battery-powered cars was much lower than vehicles with internal combustion engines. As a result, people will not pay any attention to take interest in electric vehicles.

But around the 21st century the scenario changed. People started worrying about hydrocarbon fueled cars which create pollution, bad gas emissions and other disasters for the environment.

current scenario of Electric Vehicles In India

Since 2010, electric vehicles have started to become popular in addition to public transport. Most surprising is the fact that as of September 2016, around 1 million electric vehicles were delivered globally.

This was a turning point in the global acceptance of electric vehicles. The pace of acceptance was so good that by 2019 around 4.8 million cars were sold and by 2020 it reached 10 million units.

With the cost of batteries down 73 percent since 2010, electric cars have begun to accelerate their growth. The coming decade is supposed to be the decade of electric vehicles.

market share of electric vehicles in india

As electric vehicle manufacturing is becoming more popular every day, its market share is also expected to increase significantly. India’s GDP is expected to grow by an astonishing 25% by 2022.

The best part is that, in addition to reducing environmental pollution, EVs could reduce oil imports by about $60 billion by 2030. At present, 82% of the oil demand in India is met by imports. So, it is clear how much benefit will be to the Indian economy if this import cost comes down.

electric vehicle fuel price in india

Surprisingly, the fuel price of an EV can only go as low as 1.1Rs/km. As a result, for every 5000 km traveled by an EV, the overall cost comes down to around Rs 20,000. Also, it will reduce vehicular emissions, which would otherwise create a 3% GDP loss every year.

Campaign for adoption of electric vehicles

EVs are the only option when it comes to e-mobility. From 1st April 2020 to 31st January 2021, India’s fuel price has increased almost 75 times.

With the ever-increasing prices of petrol (around Rs 95 per liter in Delhi by June 2021), many states in India have already switched to electric vehicles. Delhi and Kolkata are the two leaders in this matter. He promoted e-rickshaws which are eco-friendly and economical.

An astonishing fact is that there are around 1 lakh e-rickshaws operating in Delhi, and Kolkata is not far from this rally. This development is encouraging private car owners to switch to EVs.

The Government of India has decided to adopt EVs like National Electric Mobility Mission Plan (NEMMP), Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) scheme, loan subvention and income tax exemption as well as similar exemptions at the state level. Preparation has started. ,

According to a NITI Aayog report, India wants at least 10 GWh of sales by 2022.

Some of the other methods that the government is implementing to promote electric vehicles in India are-

The GST amount was reduced to only 5% as compared to 28% for regular cars.

  • loan approx. 1.5 lakh off on buying an electric vehicle.
  • Customs duty exemption on import of EV parts.
  • Five Year Phased Manufacturing Program (PMP) till 2024
  • Stocks of Leading Electric Vehicle Manufacturers in India
  • As the electric vehicle market in India is growing rapidly, car and bike makers are slowly leaning towards making more electric vehicles.

Tata Motors:

Though a popular name in the Indian automotive industry for manufacturing vehicles for personal use, public transport and other purposes, Tata Motors is comparatively new in the electric vehicle segment.

Nexon EV, Tigor EV are some of the popular EVs from Tata Motors. However, Tata has mainly focused on passenger vehicles and electric buses. The demand for vehicles in this segment is expected to reach 5 lakh soon.

Mahindra Electric: Mahindra Electric is at the forefront of the electric vehicle industry. He built his first EV in 2001. Mahindra E20 and eVerito are two popular EV variants from Mahindra Electric.

Hyundai: Hyundai has created a flutter in the EV market with the launch of its Kona EV in India. Hyundai is expected to give the EVs 452 km on a single charge. It answers the question of all the vehicle enthusiasts in India, asking the question, “What mileage has been given.” However, the model is going to hit the market in 2-3 years.

Ashok Leyland: Ashok Leyland has developed buses and trucks based on Indian road requirements. They introduced battery swapping to India and operated vehicles like Circuit, HYBUS, Electric Euro 6 truck and announced iBUS.

Tesla – the new hype or reality

According to Nitin Gadkari, Minister of Road Transport and Highways, Government of India, this year, in 2021, the American company Tesla is launching Tesla cars in India.

The Government of India has set a target of installing 175 GW of renewable energy capacity by the end of 2022. This includes 10 GW from bio-energy, 100 GW from solar power, 5 GW from hydropower and 60 GW from wind.

At the United Nations Climate Action Summit, India’s Prime Minister Narendra Modi announced the renewable energy target to snowball to 450 GW by 2030 from 175 GW by 2022.

With these highlights in mind, it makes sense that the government is accelerating the promotion of electric vehicles, which would consume fewer non-renewable sources of energy, rather than focusing on battery charging and emission-free transportation.

So, in this scenario, promotion of TESLA cars in India is a good option for the Elon Musk-owned American company.

However, the subsidies provided to Indian companies are very high as a result of which the manufacturing cost of parts from local companies can be cheaper than TESLA.

A good amount of savings- As the Indian government is leaning towards greater usage of EVs, various incentives and tax exemptions are offered to encourage more buyers.

BOP Deficit– In 2019-20 alone, India imported crude oil worth $120 billion. This BoP (balance of payments) can be reduced to a great extent by using EV.

Benefits of using EV

  • The main factor that makes EVs a winner in the automotive industry is their eco-friendliness. However, many other factors are too important to ignore.
  • Environment first- Electric cars can reduce air pollution in urban Indian cities to a great extent. These cars use batteries that do not emit like internal combustion engines. These vehicles also help in reducing noise pollution due to low or no sound.
  • Lower Operating Cost- It is estimated that using EV reduces fuel expenditure by about 75-80%. Compared to other conventional cars, EVs have 75% less moving parts which also create very low maintenance bills.

Disadvantages of using electric vehicles

  • Expensive – EVs are slightly more expensive as they have lower maintenance costs; Since the parts are small and not sufficient in number in the Indian scenario, the cost of repairs increases.
  • Post Sales Service – Since electric vehicles are not very popular in India, the after sales service is a bit poor as compared to conventional petrol and diesel cars.
  • Infrastructure issues– The scenario in which EVs are expected to operate is still in an ideal state. There are not enough battery charging centers or car repair centers and even manufacturing centers in India. With the creation of proper infrastructure gradually, more vehicle owners are expected to lean towards buying electric vehicles.
  • Poor Road Conditions – Due to bad roads in India, the longevity of cars is decreasing. Also, the drivers need to be trained and well versed when driving these cars.

What can be done for the future development of electric vehicles

India’s EV market will soon grow at a compound annual growth rate (CAGR) of 22.1 percent. The main reason behind this is the government’s continued support and innovation to eliminate issues that might otherwise be holding the EV industry from growth.

  • Vehicle buyers as well as shareholders should be given more incentives, tax deductions and exemptions
  • R&D. spend more on
  • phasing out ICE vehicles
    building proper infrastructure
    Several campaigns to make people aware about the benefits of using electric vehicles


Looking ahead, India aspires to reach its vision of 100% electric vehicles by 2030. Certainly, factors such as increased government support, decreasing cost of technology, country’s growing interest in EVs, reducing pollution levels, etc. will collectively fuel it. and to accelerate India’s transition to electric vehicles and enable the government to get closer to its vision. However, there is still a long way to go. India’s progress on electric mobility has been commendable, but the transition will certainly take place at a steady pace. The important thing is that the right path has been set and change has started to happen.

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