As far as the Indian automotive market is concerned, electric vehicles are yet to win their hearts. Not even the apparent benefits have lightened their stands for a long time. Not even their less costly maintenance and the fact that they don’t use many parts move them. Their argument is the practicality of the transformation. One reason why the transition will happen eventually is the direction in which the world is moving. At the moment, it is not about whether electric vehicles should be the new norm but rather when that will happen. Given climate change, the transition should happen sooner than later.
India, compared to other areas, is lagging in the electric vehicle transition. It was already doing badly, but the combination of SARS and COVID-19 made the situation worse. Other challenges include lack of raw materials for local batteries production, unavailability of low-cost electric vehicles in its market, and lack of both swapping stations and reliable charging infrastructure. Despite the problems, the government is putting in some efforts, no doubt. For instance, it has set aside about Rs. 1,000 crore, which will fund charging stations. Therefore, in the next three years, charging stations’ situation will be better if not totally fixed.
According to this yearly budget, the GST on electric vehicles has reduced from 12% to 5%. As far as interests are concerned, the income tax associated with them will also decrease by Rs. 1.5 lakh. Nevertheless, nothing has changed regarding the GTS on raw materials, which is relatively high. It is crucial to note that Frost and Sullivan published a report back in April. It stated that the e-two wheelers, e-autos, and e-rickshaws would be the most out of all proposed 4 million electric vehicles by 2025. There is also the pledge by FAME II to support 10 lakh e-2 wheelers, 700 e-buses, and 5 lakh e-3 wheelers. It has fallen short of the target since 2019, but it is understandable given the current situation globally.
So, the future of Electric Vehicles in India is bright. The most promising area is the two-wheeler since the government has promised subsidies in the same. Some startups have already started making them, among them Okinawa, Anther Energy, and Revolt. Others that may become popular are electric buses and electric three-wheelers. What is undeniable is the fact that the public is aware of the existence of electric vehicles. There are also different cars favoring all budgets, unlike before when EVs were not for people operating within a tight budget. Then, there is the fact that most states are moving towards zero-emission vehicles. So, the transition to electric cars will eventually be inevitable.