India is the world’s 5th largest automobile market and is estimated to become the 3rd largest by the end of the decade. The electric vehicle industry in India is picking up the pace post-COVID-19 pandemic. In 2021, the Indian e-bike market was valued at 1.14 million USD and it is expected to grow up to 150 billion USD by 2030. It is evident from these figures that the demand for EVs is rising in the country. EVs have launched in India almost 20 years ago, with Mahindra Reva. However, it’s after two decades that EVs are finally gaining traction. Today companies are aggressively manufacturing affordable, high-performing electric vehicles, and the future for India looks electric.
There are two factors driving the need for EVs: reducing India’s dependence on crude oil imports and combating air pollution.
Here are some key factors we need to look into:
Price Fuel vs Electric:
The increasing cost of fuel is one of the top concerns in the minds of consumers today. Even though in the short run electric bikes cost more than fuel bikes, speaking about the cost of running these in India they are way cheaper. The cost of running an electric bike for 1 km is 10-15 paise whereas for a petrol bike it is Rs 2 per kilometer. Thus the lifelong cost of electric bikes is way less compared to any fuel bikes, even the added advantage of being eco-friendly.
Maintenance costs of EVs are 30-40% less than fuel vehicles. For EVs, since they don’t have complex combustion engines, and have fewer moving parts compared to their IC counterpart the wear and tear of the bikes are less, thereby reducing its overall maintenance cost. The maintenance cost of electric vehicles is approximately 40% lower than that of ICE vehicles since they require infrequent maintenance for electrical systems, including the battery, motor, and electronic components.
The higher price of EVs:
The average cost of electric vehicles remains higher than traditional fuel vehicles due to design, wiring, motor or mini engine, and battery power. E-bikes vary in price depending on their grade and quality. New e-bike batteries are expensive, and people prefer spending less on replacing the batteries for their e-bikes. But recent incentives toward producing essential components have helped EV manufacturers produce solutions. Under the ‘Make in India’ initiative, battery manufacturing by domestic manufacturers has scaled up.
Several businesses offer financing or EMI options for e-bikes, due to their higher price. Moreover, important initiatives undertaken by the Ministry Of Power, and Central and State governments are pushing too fast forward for India to adopt EVs which are on the rise. These initiatives are made to support the manufacturing and adoption of EVs in India. As part of its vision, the Indian government aims to have 30% of vehicles as EVs on the road by 2025.
Limited fast charging infrastructure:
Long trips are not practical with electric bikes due to the lack of charging infrastructure in India.
With new policies and investment pouring into the EV space, things are looking brighter. Under the FAME 2 program, the government plans to open 3000 new EV charging stations across 25 states. With charging stations on highways in the range of 40-45km by 2023, all powered by solar energy>. Petrol pumps and private players are setting up charging stations across cities. Long-term plans to build battery swapping centers are also in play, where owners can swap for charged batteries, plug in, and be back on the road within minutes.
India is surely moving towards the electric revolution and BuyMyEV can’t wait to serve our fellow citizens with the best, most cost-effective, and eco-friendly mode of transport.