The Shift from Luxury EV to Affordable One

In modern times, the move to electrified transportation is increasingly inevitable. Electric cars make very attractive choices, especially in our environment and among the people around us. As we continue to make progress, transportation is the next big challenge for sustainability and manufacturers and individuals alike can play a major role in switching to electric vehicles.

Let’s see why Electric Vehicles are a legitimate option for both the manufacturers and consumers:

1. Smooth Driving Experience:

Many electric vehicles are designed to be comfortable and provide a much smoother ride than an internal combustion engine. The suspension needs to be solid to support the weight of the battery, and the ride quality complements the quietness. The only noise that an electric motor make is a low rotational noise. This means that the comfort in the cabin is great. You can also apply regenerative braking to charge your car on the go. The EV is easy to maintain. No adjustments are required and few moving parts need to be replaced in the end. EVs usually provide a smoother transmission and, unlike the average internal combustion engine vehicle, wear parts such as spark plugs, valves, mufflers / tailpipes, distributors, starters, clutches, drive belts, hoses, catalytic converters, etc. Will be reduced. Electric vehicles are also becoming attractive to consumers who want to try eco-friendly mobility. As a result, they also have very good resale value. Few offer a buy-back experience like MG.

2. Technology of Changeable Batteries:

This technology allows you to replace your discharged and charged batteries at a charging station. While this technology still creates enroutes, whenever mass adoption of this technology occurs, electric vehicles will be the preferred means of transportation for car buyers. There are models like MG that are working to bring this future technology to our country today with cars like the MG ZS, Tata EVs.

3. Zero Emission Technology:

Cities around the world are fighting pollution, and India is no exception. Given the climate challenges the world is currently facing, it will be time for zero emission zones to exist in some parts of the country, especially in major cities. Electric vehicles drive on the road without emissions. The fact that electric vehicles emit zero emissions helps reduce CO2 and other harmful greenhouse gases.

4. Minimal Maintenance Cost:

Most cars are bought with a loan, so ownership costs become very important for car owners. The daily operating costs and maintenance costs are very low compared to gasoline or diesel vehicles. The average cost of EV repair can be about 50% compared to conventional vehicles as EVs are naturally more reliable than internal combustion engine (ICE) vehicles due to fewer mechanical components that tend to fail and generally provide better data to enable efficient maintenance.

5. Tax Credits are Constantly Lowering the Costs:

Studies show that the price gap between electric and gas vehicles is expected to close over the next decade, but this depends on continuous improvements in battery technology and could lead to lower production costs. Non-refundable tax credits from the Government can change the complete scenario of the EV market.

PROBLEMS BEHIND MAKING EVs MAINSTREAM

1. Higher Initial Purchase Cost:

While it is true that all electric cars cost less to operate and then their competitors ​​use gas. Continuous lower costs often result from trading at a higher purchase price. The current price gap between parallel models appears to be around $ 10,000 (Almost 7,70,000 INR), but this gap should continue to shrink as technology grows. Apart from this, EVs tend to cost less during the lifetime of the car if you consider gas and maintenance cost properly. However, there are often national and provincial benefits and discounts that can close one and all of this purchasing gap.

2. Replacing the Batteries is Expensive:

The one bad thing you should be aware of in electric vehicles is that replacing the

battery packs is expensive. Batteries are one of the main reasons why EVs have high initial costs. A full replacement can cost over $ 6,000 (Almost 4,60,000 INR). However, these prices are declining as technology advances. This problem is alleviated by the fact that a full battery replacement is not usually necessary, and overall, EVs remain cheaper to operate for the rest of their lives.

3. Current Consumer Base of EV manufacturers:

When considering whether you can buy an electric vehicle, you need to understand your budget, consider the federal tax credits currently offered to electric vehicle buyers, and investigate your billing options. Not only are vehicles becoming more expensive, but the EV market favours wealthier upper-class families. This is evident from EV pricing and where government planners installed charging stations.

STEPS REQUIRED TO BE TAKEN FOR MAKING EVs MORE AFFORDABLE:

To expand electric vehicles (EVs) beyond early adopters, we need to make EVs equitably accessible and affordable. This requires two core types of incentive programs:

1) incentives for buying new EVs, including increased incentive amounts for low- and moderate-income consumers and

2) incentives for buying used EVs. To achieve equity goals, these incentives must be provided at the point of sale, rather than as a tax credit, they must be stackable with other incentives provided by utilities or other entities, and there must be meaningful community engagement.

1. Increase incentives for low- and moderate- income consumers to buy new EVs incentives are important in transforming the EV market. Providing additional incentives for low- and middle-income consumers, including the ability to collect benefits offered through various public and private programs, could make some new EVs more affordable.

2. Meaningful community involvement and partnerships are key.

These types of EV incentives are a step towards addressing the historical underinvestment of underprivileged communities and the imbalanced health impacts of pollution they continue to face. Two equity policies and program components are important to the success of these programs.

Significant involvement of disadvantaged communities, coloured communities, local and tribal communities, and genuine partnerships with community-based organisations.

A shared, accessible, comprehensive decision-making process that allows programs to effectively communicate and contact people in these communities, address their needs, and implement community-specified solutions. Useful for. This will prioritise investment in EV incentive programs and incorporate equity. This will help us build a cleaner, more sustainable and resilient future for everyone.

However, with sales growing slowly over the past year, the IC Engine sales will soon take effect, and even regular manufacturers like VW are launching their “people EVs,” which will certainly lay the foundation for the future of electric vehicles.

References:

• https://blog.evsolutions.com/shift-from-ev-luxury-vehicles-to-affordable-necessary-cars

• https://www.cnbc.com/2021/12/29/electric-vehicles-are-becoming-more-affordable-amid-spiking-gas-prices.html

• https://www.news18.com/news/auto/top-5-reasons-why-you-should-switch-to-an-electric-vehicle-immediately-and-save-earth-3380465.html

• https://energycenter.org/thought-leadership/blog/how-make-evs-affordable-more-consumers

• https://thenextweb.com/news/affordable-evs-will-be-the-catalyst-for-a-decade-long-shift-to-electric-cars

• https://www.tribuneindia.com/news/archive/business/electric-vehicle-makers-seek-road-tax-exemption-801432

• https://www.carmagazine.co.uk/electric/ev-car-battery-capacity-tech/

• https://www.recurrentauto.com/research/costs-ev-battery-replacement

• https://etimg.etb2bimg.com/photo/89676870.cms

Report By:

Soumya Roychowdhury

Technical Core Team Member, JUMSC