Electric Cars are the future of our technological world because They are 100% eco – friendly, they run on electrically powered engines.
Thus Every year we have seen automakers upgrade the old ones into new and also align more best electric vehicles.
Everyone is working on electric vehicles to make it best electric vehicle from well known established companies to new ones. They have less fuel consumption and maintenance costs.
It can help to improve fuel economy, lower fuel costs and reduce outflow. Best Electric Cars are eco-friendly for us.
So to know about the challenges and opportunities of Electric Cars,We have to first understand the meaning of electric cars,Why are they Important for us? How do they all work?
What is the meaning of Electric Car?
How do all electric cars work?
An Electric Car is a type of electric vehicle which is run by an electric motor powered by electricity through batteries or a fuel cell.
Charging an electric car can be done by charging stations which are installed in both houses and public areas.
The charging time for an electric car ranges from 30minutes to 12 hours depending upon speed of electricity and size of battery.
The purpose for using electric vehicles is to serve an eco-friendly environment to all because these don’t use exhaust systems and have no emission.
Best Electric Cars help to achieve clean air and fewer green houses.
It is estimated by consumer reports that the average life of an electric vehicle is nearly 17 years of use if d 12000miles yearly driven.
Advantages of Electric Cars
- No Gas required
- More Convenient
- Save money and fuel
- No Emissions
- Safe to drive
- Cost Effective
- Low Maintenance
- Reduce noise pollution
- Battery life and cost
- Easy driving
There may be disadvantages also but advantages are more than disadvantages.
Why are Electric Cars Important for us?
Electric cars come with many benefits and a nice range of luxury and more budget-friendly options available in addition to the environmental implications.
There are 5 reasons why they are Important for us and also for our Future.
Electric Cars are cheaper in the long run.
They are cheaper because they are running on fuel based engines, which need less wear and tear, less servicing and repairs cost.
They are cheaper than petrol or diesel.
Government incentives are increasing Electric Vehicles production.
Governments around the world continue to provide policy-driven support for electric cars production and adoption. The main regulatory incentive is to decrease CO2 emissions to achieve a future where zero-emission vehicles are the norm.
Thus, countries like Norway are starting to make pledges to phase out internal combustion engine vehicle sales.
Electric Cars are Eco Friendly and better for health.
Reduced harmful exhaust emissions is good news for our health. Better air quality will lead to less health problems and costs caused by air pollution3. They are also quieter than petrol/diesel cars, which means less noise pollution.
The environmental, and health benefits of switching to electric Cars is pushing both industries in that direction. Constant regulatory resolutions aid this.
Electric Cars are better for Networks
They will help us :
- better to utilise the electricity network.
- Electric Cars owners avoid higher-cost charging periods
- the entire electricity system work more efficiently
- to support the integration of more small and large-scale renewable energy systems into the electricity grid.
- A more enjoyable driving experience.
One of the first things people notice about electric cars is how quiet they are. They have a lower center of gravity, which provides both driving and safety benefits.
Now it’s time to draw an attention towards Challenges and Opportunities of Electric Cars in India and Tax Incentives for Electric Cars
Challenges of Electric Cars in India
As per latest industry report, India’s Electric Vehicles market is estimated to come out as a $7.09 billion opportunity by the year 2025. Furthermore, the Indian government is also renovating measures with an aim to achieve 100% electric vehicles mobility by 2030.
In fact, the Indian Electric Cars market is expected to witness a robust CAGR growth of 42.38%.
However, the estimation of growth is also accomplished by concerns about certain specific challenges related to inadequate supply chain, certain government policies, consumer behavior, infrastructure, etc.
These challenges must be duly considered by the foreign investors to formulate an adequate India market entry strategy and avail assistance from India entry strategy consulting firms to achieve the desired results.
Let’s have a look at such challenges
The charging infrastructure is very weak in rural populated areas. This is the question on everyone’s mind who is going to purchase an electric car before purchasing.
They are often worried about the capability of electric cars to reach their destination before the battery dies out and in the absence of a charging point.
Lack of Trained Personnel
While the technology is still new and is being accepted more day by day.
The repair and maintenance network is still very less as compared with ICE cars.
The lack of people skilled in Electric CARS maintenance is one of the major causes of this challenge.
High Initial Cost
Electric Cars are very expensive in comparison to ICE cars,which gives rise to Uncertain consumer Behaviour.
The average starting price of an electric car in India is about approx 13 lacs, whereas the average price of a regular fuel powered car is approx 4.5 lacs.
Lesser Battery Technology
The fact is that Our country lacks certain minerals (cobalt and lithium) which are used to produce electric batteries.
It negatively impacts the country’s aim to become an Electric Cars Users.
Supply Chain Problems
The number of choices a consumer has to purchase an electric car is less as compared with purchasing an ICE.
Opportunities of Electric Cars in India
The list of business opportunities of Electric Vehicles in India are
- Establish Electric Cars fleet
- Electric Vehicles leasing
- Public Charging Stations
- Swapping Stations
- Battery Recycling Business
- Grid Energy Storage
- Electric Vehicles service and maintenance
- Battery pack and cell manufacturing
- Solar integrated Electric Vehicles Charging
- Electric Vehicles training services
Tax Incentives for Electric Vehicles
In the union budget 2019, the government has announced a tax incentive plan to purchase electric cars .
In the budget speech, the finance minister has stated that advanced batteries and registered e-vehicles will be incentivised under the scheme.
A new section 80 EEB has been introduced allowing a deduction for interest paid on loan taken for the purchase of electric vehicles from the AY 2020-21.
Features of Section 80 EEB
- This deduction is only applicable to an individual,not to any other taxpayers.
- This deduction would apply to those who purchase an electric car for personal use, to claim the interest paid on electric vehicles.
- In case of business use, an individual can also claim the deduction up to Rs 1,50,000 under section 80 EEB.
Any interest payments above Rs 1,50,000 can be claimed as a business expense. To claim as a business expense, it is necessary that the vehicle should be registered in the name of the owner or the business enterprise.
Conditions to claim the deduction
- The loan must be taken from a financial institution or a non-banking financial company for buying an electric vehicle.
- The loan must be sanctioned anytime during the period starting from 1 April 2019 till 31 March 2023.
- “Electric vehicle” has been defined to mean a vehicle which is powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle and has such electric regenerative braking system, which during braking provides for the conversion of vehicle kinetic energy into electrical energy.