Volkswagen Financial Services- 27 Apr 2018

The Pros and Cons of Opting For an Electric Car

In a world that’s always on the move, we all look forward to getting to our destinations quickly. We look to avoid the hassle of stopping at long queues at gas stations for refuelling. You may ask, “How is that possible?” Well, in today’s world anything is possible with the changing technology and with a new outlook at life. There is a miraculous upgrade brought to the vehicular world, simply called ‘Electric Vehicle.’ The adoption of new technology has been India’s latest trend. If we were to believe The Society of Indian Automobile Manufacturers (SIAM), by 2030 at least 40% of new car sales will be of electric vehicles and the same will be 100% by 2047. Despite the trend being very new, the government has assured an infrastructure policy for charging facilities for these electric vehicles, so that at least 30% of the vehicles in use by 2030 would be electric. This assurance from the Central Electricity Authority, with the support of the Power Ministry, will pave way towards the availability of power stations across India.

Tender for 10,000 electric cars have already been floated by the EESL (Energy Efficiency Services Ltd.), for which TATA Motors and Mahindra and Mahindra are already qualified bidders. Meanwhile, Volkswagen promises to invest largely in the sector as soon as 2019.

Electric cars have zero emissions and are very quiet, but are they cost friendly? Well, to state the fact, they are slightly pricey than fuel cars but they also garner incentives like tax credits. A car like Nissan Leaf gets its owner a tax credit till Nissan makes a sale of 200,000 electric vehicles. Electric car buyers in California are offered a tax rebate of $2500, while electric car buyers in Colorado enjoy a tax credit of $5000. Will a country like India provide this kind of tax credit to its people? But even before we ask the question of tax credit in India, the government must first consider the cost to generate electricity, and provide the most consumer-friendly rates for recharging the electric vehicles at power stations.

The advantage of electric vehicles is that the buyer can setup a recharging facility at home, recharge the vehicle overnight and have the car ready to drive in the morning. The cost per mile incurred with an electric vehicle is 1/3rd of that of a fuel car. Electric cars don’t have a high maintenance cost as the only thing one has to do is keep the car tires properly inflated.

While everything has its pros and cons, so do electric cars. The only major drawback that stands out is the lack of choice in the variety of electric cars in the market. Though the Indian market is expanding and moving towards electric vehicles, it will still take a few years before consumers can choose from a range of car models suited to their needs. With companies such as Volkswagen planning to invest heavily in the Indian electric vehicle sector, the future looks promising.