Economics of Electric Mobility: Cost-Benefit Analysis for Individuals and Businesses
With domestic fuel prices skyrocketing, EVs in India are becoming more appealing to consumers. Especially two-wheelers, which have become the most popular segment among the masses.
Unlike the USA and China, electric two-wheelers dominate Indian markets. According to the data of the Society of Manufacturers of Electric Vehicles (SMEV), E2W sales in India rose two and a half fold reaching 8,46,976 units in the 2022–2023 fiscal.
Economic for Individuals
According to a survey by EY, in India, 90% of customers are willing to buy an EV, regardless of the premium cost. That initially proves that domestic consumers are viewing EVs as a viable replacement for ICE vehicles, which bear a high cost.
If we compare the TCO (total cost of ownership) factor for ICE (internal combustion engine) vehicles and EVs, it turns out that the latter is 50% cheaper.
In a bid to surge the adoption of EVs, the government of India has reduced the GST (Goods and Services Tax) from 12% to 5%. The Ministry of Road Transport and Highways has also advised the states to reduce the road tax on the purchase of EVs.
Lucrative for businesses
In a bid to check on climate change, the government has asked aggregators such as e-commerce companies, food delivery services, and cab aggregators to switch completely to EVs.
Low running and Maintenance Costs
EVs are more energy efficient than their conventional counterparts as they use electricity. This is how it not only saves businesses money but also safeguards their sustainability goals.
Easier to setup a fleet
The nation's shift to EVs is driven by new-age automakers developing vehicles with up to 100 km range per charge, eliminating range anxiety for businesses and proving useful for fleet operations.