August didn’t turn out to be the standout month that many EV manufacturers had hoped for,Sales in August dropped by approximately 25.05% compared to July, largely due to the middle-month effect caused by the Electric Mobility Promotion Scheme 2024 (EMPS), which runs from July 1 to September 30, 2024.
I think math is bit different here.
3KW battery consumes 3 units. So let’s consider Rs10/unit. So to charge battery, it takes Rs30. And range is around 100. So per kilometer cost is just Rs 30 paisa.
Let’s consider 40 paisa for margin of safety.
Where as Petrol scooter gives mileage of around 45. So per km cost is around 2.25.
Battery life is told to be 70000km. But if we consider 60000 to be on conservative side then to run 60k, EV will incur Rs 24000. While Petrol scooter will incur 135000.
So effective saving is 135000-24000=111000
This does not include maintenence cost which is more for petrol scooter.
So clearly you can purchase either new vehicle or just replace battery and continue.
Very nicely put.
One of the main reason EVs are not pushed in India and rest of the world, is due to dependence on China for battery and their control over Lithium mines.
I think this would be a market wide hit.
There will be a big battery revelation. This big new battery compound will solve many issues(obv, bringing with it a new set of challenges).
But the only question is when will this revelation happen. Will it already be too late. Or will it be after the whole 1st gen of all EV gets to become useless.
Only time will tell.
Luckily I’m not in the market for any 2 wheeler.
I don’t think it’s an accurate statement that EVs are not being pushed in India or globally. India has a very ambitious target for EV as you can see from below article.
Same goes for the rest of the world. People often ignore hybrids that also run on battery so we need to combine both EV and hybrid to get a true picture of their growth trajctory. See the article below.
The biggest challenge for EV adoption in India would be charging infrastructure and technology itself. Once they slowly gets resolved, adoption will improve.
Total Vehicle Cost Analysis
[1711106202_Alternative Fuel
Source Care edge report dated 22march 2024 link below
1711106202_Alternative Fuel Vehicles_CareEdge Ratings.pdf (317.1 KB)
Currently On one side, we have Union Heavy Industries Minister H.D. Kumaraswamy saying that FAME III is on the way. He recently mentioned that the government could finalize the third phase of the FAME scheme in the next month or two. An inter-ministerial group is apparently working on it, addressing issues from the earlier phases.
On the other side, we have Union Road Transport Minister Nitin Gadkari, who suggests that EV subsidies might be coming to an end. He believes that with increasing demand and production, costs are dropping, which could reduce the need for government support.
Gadkari also highlighted that the GST on electric vehicles is just 5%, compared to 28% for petrol and diesel vehicles, which he sees as a major advantage for EVs.
It seems like there’s an ongoing debate about the future of India’s EV policy. While Kumaraswamy’s comments suggest that government support is still needed, Gadkari believes the industry is ready to stand on its own.
This uncertainty is causing some worry in the EV industry, especially with the festive season around the corner. October is a huge month for vehicle sales in India, with Navratri and Diwali both taking place. EV manufacturers are concerned that if EMPS ends and FAME III isn’t ready, there might be a gap in subsidies.
Some industry players are calling for either an extension of EMPS or a quick rollout of FAME III to keep the momentum going.
However, Gadkari remains optimistic. He’s confident that India can become a global hub for EV manufacturing, with support from initiatives like the Production Linked Incentive (PLI) scheme, which aims to boost local production.
The government’s next move will be crucial in shaping the industry’s future.
Also, common man should factor in higher GST on EV going forward.
Once No. of EV cars sold out per quarter starts going up, there is high possibility that, all current concessions such as Low GST, Low Road Tax would be removed or rationalized to higher levels.
By the time, most of us are willing to buy EV car, most of these tax waivers would have been reduced, so actual practical calculations would be quite different.
Having said this, it is clear that, even after higher taxes, EV would be better and less costly option in the long term, provided basic charging infrastructure is in place and Electricity charges are not hiked by the Authorities.
There is tendency in certain nations to increase taxes on those things which start becoming popular, so one must factor such things in all future calculations !!!
Not sure if the lifetime maintenance cost shown here depicts reality. It could be much higher. Also, is the cost of battery replacement considered? apologies, I havent read the report.