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0EVs have arrived, and are all the rage. From media attention to celebrity hype – EVs have been adopted by the most popular across industries. Tech gurus and Silicon Valley leaders are all endorsing the EV way of life. But is the landscape overhyped? Are EVs too good to be true?
This article dives into the facets of EV that are praised, and whether they may be overvalued.
The Cost Factor
Many argue that EVs cost significantly less to operate than gas-powered vehicles. But is it entirely true? While the cost of buying an EV may be steep upfront compared to cheaper gas alternatives, the cost of fuel in the long run can be steeper. Electricity for an EV is around ₹1.2-₹2 per km, while fuel for an ICE vehicle costs ₹6-₹10 per km. In fact, over a 10-year period, EV owners can save up to ₹5 lakhs in operating costs.[1]
The average cost of an EV has dropped by 50% since 2010, and battery costs have fallen from $1,200/kWh to $132/kWh[2]. Experts predict price parity between EVs and ICE vehicles by 2027. This coupled with lower long-term costs on maintenance is sure to give EVs a worldwide boost. Moreover, EVs have fewer moving parts and require less maintenance. Annual maintenance costs for EVs are 50%-70% lower than for ICE vehicles according to consumer reports.
Cleaner but Not Perfect
EVs produce 50%-60% less CO₂ emissions over their lifecycle compared to ICE vehicles, even accounting for battery production and grid electricity. A Tesla Model 3 emits 4.6 metric tons of CO₂ annually, compared to 10 metric tons from a similar-sized gas car[3]. However, reliance on coal-based electricity in countries like India reduces the environmental advantage.
Battery is another consideration for the rise of EVs. Will it ultimately be the Achilles’ Heel? After all, lithium-ion batteries require rare metals like lithium, cobalt, and nickel, and this raises concerns about resource depletion and mining practices. Fortunately, the industry is actively exploring battery alternatives that offer more efficiency and are more abundantly available.
Range Anxiety – A Persistent Concern
Although modern EVs have improved range, drivers still worry about running out of charge. 40% of potential buyers cite range anxiety as a major barrier to EV adoption[4]. But this condition is quickly evolving. The average EV now offers a range of 250-400 miles on a single charge. Meanwhile, globally, there are 2.7 million public charging points, a 55% increase from 2021[5]. Charging times also vary widely, from 15 minutes with fast chargers to 12 hours with standard home chargers.
Government, Grids, and Global Trends
In India, the FAME-II scheme provides subsidies of up to ₹1.5 lakhs for EVs. Countries like Norway, where EVs account for 79% of new car sales, offer zero VAT, free parking, and toll exemptions.
While exemptions and subsidies like this are emerging around the world to help bolster EVs, they still rely heavily on electricity grids, which may strain existing infrastructure. A full transition to EVs could increase electricity demand by 25%-40% globally by 2050. However, technologies like vehicle-to-grid (V2G) systems can help stabilize grids by feeding back stored energy during peak demand.
As the future for EVs is still taut and bright, global adoption is expected to boom with countries like China and India already witnessing sharp growth. China leads the market with 60% of global EV sales, followed by Europe (20%) and the U.S. (15%).
In conclusion
Ultimately, EVs deliver superior torque, acceleration, and performance compared to traditional vehicles. Moreover, EV innovations such as autonomous driving and smart charging, are reshaping transportation. While the economic and long-term ecological advantages are undeniable, EVs also drastically help improve urban air quality by eliminating tailpipe emissions. Cities with high EV adoption, like Oslo, have seen up to 35% reductions in urban air pollution[6]. In India, where 14 of the world’s 20 most polluted cities are located, EVs could make a significant difference.
By 2050, EVs could prevent 7 gigatons of CO₂ emissions annually, equivalent to the total annual emissions of India and the U.S. combined[7]. While EVs are not perfect, they remain the best bet for reducing emissions, curbing air pollution, and transitioning toward a sustainable future.
[1] TERI, India
[2] BloombergNEF
[3] Union of Concerned Scientists
[4] McKinsey
[5] IEA
[6] World Resources Institute
[7] IEA
