In an attempt to demystify the notion surrounding electric vehicles as well as enlighten more people on why electric vehicles are the future of mobility in India, this article seeks to debunk major myths about EVs.
Why is the Indian Government Betting Big on EV Space?
Both the government and Indian corporations are expanding their spending to make EVs (Electric Vehicles) affordable and environment friendly. One such project is the PM E-Drive Scheme, whereby the government is eyeing to invest ₹10,900 crores for faster adoption of EVs.
● This will greatly reduce the cost of owning a car, hence the possibility of new consumers joining the electric vehicles market.
● The PLI (Production Linked Incentive) Scheme for ACCs (Advanced Chemistry Cells) proposes ₹18,000 Crore, which is planned to boost local battery manufacturing. This is regarded to be a game-changer initiative because batteries account for a major component of an EV’s production cost.
● By pushing domestic manufacturing of lithium-ion batteries, solid-state, and hydrogen fuel cells for electric cars, India is not only achieving cost efficiency but also setting its journey as a geopolitical power in the world of electric automobiles.
● The private sector is also not idle in this endeavor. Leading automobile companies in India have committed more than ₹75,000 Crore towards the development of new-gen technologies and setting up of charging points.
● For instance, Jaguar Land Rover (JLR) and Tata Motors are among the automotive firms which want to manufacture EVs locally and export the same. Their actions will slightly increase India’s cost competitiveness and manufacturing experience.
Common EV Myths Busted
Electric Vehicles (EVs) have gained significant attention, but several misconceptions still surround them, often deterring potential buyers. Let’s address these myths with facts.
● Myth 1: EVs Do Not Have Enough Range
Reality: Today’s EVs can deliver over 300 km of driving under a single charge which is adequate to cater to daily use. Increasing the pace of charging is made possible through fast chargers adding useful range in under half an hour.
● Myth 2: EV Batteries Degrade Quickly
Reality: EV batteries are expected to last about 8-10 years or even more. This explains why manufacturers are able to provide warranties that are founded on competence in battery longevity.
● Myth 3: EVs are Too Expensive
Reality: The purchase cost of an EV may be higher initially, but benefits from volume sales and operating cost advantages along with centre incentives such as PM E-Drive contribute to the lower cost of ownership than a conventional ICE vehicle throughout the life of the car.
● Myth 4: The Charging Infrastructure is Still Needed and Not Enough
Reality: As of September 2024, India has more than 35,000 public charging stations. Moving forward, the government intends to install another 22,000 charging points by 2026. Campuses and cities or highways are also growing at a very fast pace in installing charging options.
● Myth 5: EVs are Not Suitable for Use in Long-Distance Trips
Reality: Currently, the increasing numbers of fast chargers on highways and continuously improving battery technology of electric vehicles open the possibilities for long-distance travel. At present, some models boast ranges beyond 500 km per charge.
● Myth 6: Maintenance of an EV is Quite Complex
Reality: Compared to ICE vehicles, there are fewer mechanical components in EVs to maintain. Hence, the service of routine checks means that fewer parts are involved, which makes owning EVs even easier and sometimes budget-friendly.
Are EVs Taking the Lead?
Road transport today is accountable for about 12% of India’s emission level, but the rising mobility needs may lead this to double by 2050. Thanks to electrification, the government and private sector are determined to cut emissions to the necessary minimum.
● Currently, EVs have a 40% lower lifecycle emission compared to their ICE counterparts. This completely astounding figure, however, can be reduced to 80% by converting the grid to 100% renewable energy. The sales stats you see below depict a rising trend, indicating an increase in consumer confidence in India.
● Between January 2024 and August 2024, overall EV sales grew 22.8% YoY (Year-over-Year), with 1,56,199 cars sold in August 2024.
● On subsidies and incentives, in particular, came the PM E-Drive Scheme and the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cells (ACCs), which are expected to support the long-term objectives of the government.
While several automotive companies in the country are heavily investing in EVs, some are prioritising hybrids. In fact, a recent HSBC Global Research report stated that India should focus on hybrid vehicles for the next 5-10 years as a sustainable mobility solution before transitioning to fully battery-operated vehicles.
Going forward, India’s hybrid-EV car market is estimated to be $0.53 billion by the end of 2025. This market is experiencing a notable transformation owing to changing customer preferences and major technological advancements. Several automotive manufacturers are trying to position themselves in the growth sector, with Toyota taking the lead in 2023 (78.22% market share).
Infrastructure development also plays a crucial role in accelerating the Indian hybrid-electric vehicle market, with major progress witnessed in the deployment of charging stations There were around 10,900 charging units established by 2022, a significant increase from the previous years.
Nearly 26 new EVs were launched and showcased at the Auto Expo 2025. People are showing more confidence in owning these cars as they promise to offer a strong resale value. Also, as EV manufacturers use fewer moving parts than conventional vehicles, you do not have to worry about frequent maintenance. Therefore, you can save money by switching to a hybrid EV, as the initial cost is significantly lower than that of a pure EV.
Insights into China’s Booming Electric Car Market
In China, the ecosystem for EVs has emerged almost overnight. From 2009 to 2023, Chinese electric vehicle firms enjoyed $230.9 billion in subsidies.
● This support helped them maintain market hegemony in 2023, as battery production grew beyond the global consumption rate with a four-times difference.
● While China has begun reducing the amount of subsidies given as its market comes of age, the Indian government is still in the process of encouraging growth.
● Measures such as implementing 5% GST on EVs but 48% on hybrid cars clearly indicate the direction the Indian government is charting towards fully electric vehicles. This is not good news for the likes of Toyota, Honda, Maruti Suzuki, and others. Also, Japanese companies have been dedicating efforts to bring down the tax on hybrid vehicles, which they believe are relatively clean and should be incentivised.
● Indian policymakers can also follow China’s example of promoting the export of electric vehicles to other countries as well as strengthening domestic manufacturers.
Challenges and Opportunities: The Future of Electric Vehicles in India
There are issues with India’s EV journey. Battery production stays expensive; it is still dependent on the import of raw materials such as lithium. However, efforts under the ‘Make in India’ campaign seek to overcome this through manufacturing indigenously.
● Labour also poses a challenge while charging infrastructure is the other challenge. Despite significant progress, rural areas and smaller towns continue to face inadequate facilities compared to large cities. Policymakers understand this fact and are dedicating resources to vent out the charging infrastructure beyond the metropolitan areas.
● There are vast opportunities ahead of everyone in the EV business. The potential for ₹1.1 Lakh Crore of savings in India’s total oil import bill, which is achievable only with 30% adoption of EVs, is a huge global economic opportunity. Much of this could be exhausted in other strategic areas which would improve the economy.
● Also, the EV revolution will lessen the susceptibility of the country’s financial situation to price fluctuations in the international oil market. The change towards EVs is in line with India’s net-zero target for 2070 and its other sustainability objectives.
Conclusion
India is now at a crossroads when it comes to the country’s green mobility plan. Both the government and the private automotive companies thus reinforce the message that electric vehicles will soon be the new normal and not the exception. For customers seeking to transition from ICE vehicles, EVs are a concept that brings in environmental gains, reduced cost of ownership, and long-term viability.
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First Published Date: 14 Feb 2025, 12:35 PM IST