The Economics of Electric Vehicles in India

Despite being in existence even before ICE (internal combustion

engine) vehicles and being fundamentally superior to them, the only
reason EVs are not mainstream yet is – economics! For a comparable
performance, EVs were significantly more expensive than their ICE
counterparts. Battery of an EV constitutes up to 35% of a vehicle’s
cost, and  battery costs have come down by 85% in the past decade.
At the current battery prices, the upfront cost of EVs is still higher
than ICE vehicles, but in many use cases the Total Cost of Ownership
(TCO) is lower and close to breakeven.

India is a unique market for EVs. 85% of ICE two-wheeler (2W)

market and 78% of ICE four-wheeler (4W) market in India is
concentrated at less than INR 90,000 and less than INR 1 million price
points respectively. It is difficult to offer an electric vehicle with
comparable performance in these price ranges at current battery
prices. While the upfront cost of EVs is higher, their operating cost is
significantly lower. And hence Total Cost of Ownership or TCO is an
important aspect of “EV purchase decision.
The Impact of Electric Vehicles on the Indian Economy

India's electric vehicle industry is booming; the

government has launched schemes and incentives to
promote electric mobility. The country has accepted
that environmental development can be pursued
without compromising economic growth. This can be
seen in the latest EV sales statistics.
Current Stats
According to an independent study conducted by the
Centre for Energy Finance (CEF), the EV market will
be at $206 billion by 2030. This target would require a
$180 billion investment in production and
infrastructure. India sold 3,99,349 units of EVs in the
fiscal year of 2021 – 2022, with over 97% of these sales
being two-wheeler and three-wheeler vehicles
The Impact of Electric Vehicles on the Global Economy
If it seems like electric vehicles are
proliferating in unprecedented volume and
variety, it's because they are — and they're
gradually changing the world around them.
Fueled by skyrocketing demand in Europe,
China and the U.S., sales of pure electric and
plug-in hybrid passenger vehicles in 2021 are
on pace to more than double to a record 6.2
million units, according to S&P Global Market
Intelligence data. At nearly 9% of the global
passenger vehicle market, up from less than
3% just two years ago, this marks an emphatic
finish to a long ascent to commercial
relevance
VEHICLE
A vehicle is a machine such as a car, bus, or truck which has an engine and is used to carry people from place to place.

Types of vehicle-
Internal Combustion Engine vehicle-
In an internal combustion engine (ICE), the ignition and combustion of the fuel occurs
within the engine itself. The engine then partially converts the energy from the combustion
to work. The engine consists of a fixed cylinder and a moving piston. The expanding
combustion gases push the piston, which in turn rotates the crankshaft. Ultimately, through
a system of gears in the powertrain, this motion drives the vehicle’s wheels.

Electric vehicles-
All-electric vehicles, also referred to as battery electric vehicles (BEVs), have an
electric motor instead of an internal combustion engine. The vehicle uses a large
traction battery pack to power the electric motor and must be plugged in to a wall
outlet or charging equipment, also called electric vehicle supply equipment (EVSE).
Because it runs on electricity, the vehicle emits no exhaust from a tailpipe and
does not contain the typical liquid fuel components, such as a fuel pump, fuel line,
or fuel tank. 
Hydrogen Fuel Cell vehicles- • Hybrid vehicles-
Fuel cell electric vehicles (FCEVs) are  • A hybrid vehicle is one that uses two or more
powered by hydrogen. They are more efficient distinct types of power, such as submarines
than conventional internal combustion engine that use diesel when surfaced and batteries
vehicles and produce no tailpipe emissions—they when submerged. Other means to store
only emit water vapor and warm air. FCEVs use energy include pressurized fluid in 
a propulsion system similar to that of electric hydraulic hybrids.
vehicles, where energy stored as hydrogen is
converted to electricity by the fuel