What are the Busting Electric Vehicle Myths You Should Know?4 min read
With the emergence of the concept of Electric Vehicles (EVs) in India, there have been several myths regarding EVs which has been revolving around. So, what are these myths, and should you be concerned about the same, let’s know it all in this article as we move ahead.
EV Charging Myths:
1) Difficulty in Finding Charging Stations:
- The lack of charging infrastructure is one of the most significant barriers to EV adoption.
- An EV charging infrastructure powered by local electricity can be installed at private dwellings, public utilities, and commercial entities.
- Companies like Tata Power, etc. are setting up EV charging stations at a very faster rate.
- The government of India has taken several initiatives to create proper infrastructure for EV Charging points and laid various guidelines.
- The Ministry of Power has prescribed at least one charging station to be present in a grid of 3 km in cities and at every 25 km on both sides of the highways.
- The Ministry of Housing and Urban Affairs has mandated that 20 percent of parking space in residential and commercial buildings be set aside for EV charging facilities under the Model Building Bye-laws, 2016 (MBBL).
- Giving effect to the MBBL will also necessitate state governments making required changes to their building regulations.
- As per Vahan 4 data, as of March 25, 2022, a total of 10,76,420 EVs and a total of 1,742 Public Charging Stations (PCS), as per the Bureau of Energy Efficiency (BEE), are operational.
2) EVs are more expensive than ICE Vehicles:
- Does EV costs a lot more than an ICE vehicle and remains one of the biggest concerns?
- The answer is the upfront cost of an EV is generally higher than a comparable ICE vehicle (especially if it’s a four-wheeler).
- This is due to the high cost of the lithium-ion battery which powers most EVs.
- When comparing the upfront cost, fuel costs, and maintenance costs, we find that running EVs for more km/day results in substantial fuel cost savings over ICE vehicles, making EVs much cheaper over their lifetimes
- The cost of running an electric car is just about 20% (or even lesser) than the cost of using a petrol or diesel one.
3) Difficulty in Financing EVs:
- Retail Financing of EVs in India has been slow and is reluctant to ramp up which is generally due to the intital phase of EVs.
- According to Niti Aayog and the Rocky Mountain Institute (RMI) India, the country’s banks and NBFCs have the potential to achieve an EV financing market size of Rs 40,000 crore by 2025.
- According to an Indian Energy Storage Alliance (IESA) analysis, the EV industry in India would develop at a CAGR of 36% until 2026, with the EV battery market growing at a CAGR of 30%.
- Customers can now get green auto loans from the State Bank of India. Those who apply for EV loans will receive a 20 basis point interest rate reduction.
- The Indian government has laid out several strategies to boost and encourage the funding of the electric vehicle sector. EV has a lot of growth potential in the future, and with such strong support from the government, it won’t be difficult for the retail investor to fund the EV sector.
4) EV Batteries are catching up fire because they are unable to handle the heat:
- The recent incidence of lithium-ion battery fires in e-scooters across the country has raised serious concerns among both existing and prospective EV buyers. As a result, individuals have blamed the fires on rising temperatures across the country and the globe.
- Batteries are designed to resist temperatures higher than those experienced during the summer. The misconception that the Indian atmosphere needs unique battery engineering is debunked. Battery failure occurs not as a result of external heat, but for one of three basic reasons:
- the quality of cells
- thermal management through a battery management system
- the packaging of batteries
5) Is there Government Support?
- The government of India has laid several policies and guidelines to support the EV atmosphere in the country
- The government of India via Panchamrit has stated a clear intention to uplift the EV sector in the country. Also, the support of the government in the EV sector dates back to 2013
- Installing 500 gigawatts (GW) of non-fossil energy capacity by 2030
- Reduction in emission intensity of GDP by 45 percent over 2005 levels
- Sourcing 50% of the electricity from non-fossil sources by 2030
- Reduction in carbon emission by 1 billion tonnes till 2030
- Achieving net-zero by 2070
What Should Individuals Do?
EVs can get cleaner over their lifetimes as the energy that powers them gets cleaner India is already deploying renewables at a healthy rate. And even if it wasn’t for Climate Crisis, EVs are far better because they help reduce local air pollution. There’s no noise. There’s the possibility to ‘fuel’ at home, even using Solar
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.