The EV future is inevitable
- US automobile giant General Motors announced that it aims to stop selling petrol-powered and diesel models by 2035.
- Audi, based in Germany, plans to stop producing such vehicles by 2033.
- In February 2019 UK prime minister, Boris Johnson, said he would bring forward a ban on new petrol and diesel car sales from 2040 to 2035.
As the popularity of electric cars rises over the next decade, accompanying drops in battery prices and reduced R&D costs should see the cost of purchasing electric, crossovers or SUVs come in line with that of similar internal combustion engine (ICE) vehicles.
Taking the total cost of ownership over five years into account, these drops, as well as lower fuel and maintenance costs, could see EVs costing much less than their ICE counterparts by 2025.
EVs are getting cheaper in 5–10 years
Increasing lithium extraction and refinement, streamlining manufacturing processes, and bringing more efficient next-generation battery chemistries to market will all contribute to making batteries more affordable in the long run.
Lithium itself is not scarce. A June report by BNEF2 estimated that the current reserves of the metal — 21 million tonnes, according to the US Geological Survey — are enough to carry the conversion to EVs through to the mid-century.
As battery pack costs drop by approximately $104/kWh in 2025 and $72/kWh in 2030 the overall cost of EV vehicles could reach half the price of gas cars.
Fuel savings are the real deal
Between 2022 & 2026 is the perfect time to get an EV. For example in the US, the first owners of 200-mile electric vehicles realize fuel savings of $3,500 for cars, $3,900 for crossovers, and $4,200 for SUVs, based on electricity costs typically being much lower than conventional vehicle gasoline expenses.
Why are more people buying EVs?
Key factors that are driving the India Electric Vehicle market growth include the attractive incentives being offered by the Indian government on the production and purchase of electric vehicles to encourage the adoption of electric vehicles are anticipated to drive the growth of the market over the forecast period.
7 financial benefits of EVs in India
1. Lower running costs
The cost to charge an electric vehicle compared to the price of petrol or diesel is substantially low.
2. Low maintenance costs
Electric vehicles have comparatively lesser moving parts meaning lower maintenance costs in the long run.
3. Tax and financial benefits
The registration fees and road tax on purchasing EVs are lesser than ICE vehicles.
4. Better performance
Electric Vehicles are lighter in weight, and their acceleration is impeccable compared to fuel-powered vehicles.
5. Convenience of charging
There is no need to find the nearest petrol station to fill with fuel. Charge your EV at home and get moving or even take advantage of battery-swapping services.
6. Spacious cabin and more storage
You can also find storage spaces under the hood since the conventional ICE is no more there.
7. They are future proof
With several countries pledging to gradually reduce their dependence on petrol and diesel (fossil fuels), EVs are considered a sustainable alternative.
Whether you're buying an EV vehicle or just a gas car in the future be sure to start investing right now.
Always remember the thumb rule of not spending more than half of your annual income on a new car. For instance, if an individual earns Rs 10 lakh per annum, the ideal budget for the vehicle would be Rs. 5 lakhs.
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