EV vs other cars: Are electric vehicles still worth the cost?

MG Motor India is set to launch its third electric car model this festive season, aiming to strengthen its position in the growing electric vehicle market amidst competition from established and new rivals. The upcoming launch signifies the automaker's focus on expanding its operations in India, especially in the electric vehicle segment. Rajeev Chaba, chairman emeritus of MG Motor India, highlighted the importance of electric vehicles in the Indian market, with expectations that EVs will comprise 15-20% of all passenger vehicles sold by 2030.

VinFast, a small electric vehicle (EV) maker backed by Vietnam's largest conglomerate, is expanding into India. The company plans to establish a $2 billion EV facility in Tamil Nadu and intends to build a nationwide dealership network. VinFast aims to offer affordable alternatives to Tesla in the Indian market and capitalize on the growing demand for EVs. Despite the challenges of the Indian EV industry, VinFast could have an advantage as one of the first EV-only companies operating in the country.

India's electric vehicle market is expanding rapidly with government support and increasing consumer awareness. Tata Motors leads the market with a range of popular models, while MG Motor India, Mahindra & Mahindra, and BYD are also prominent players.

Demand for electric vehicles (EVs) has doubled among ecommerce companies and consumer goods makers as they seek to reduce costs and meet carbon emission reduction targets. Companies such as Amazon, Hindustan Unilever, and Coca-Cola are switching to EVs for deliveries. The operating costs of EVs are much lower than diesel or CNG vehicles, leading to substantial savings for operators. Over 100,000 electric cars and a million electric two-wheelers are expected to be sold in India this fiscal year.

Mahindra Finance, Shriram Finance, Poonawalla Fincorp, Cholamandalam Finance and others expect wider acceptance in the metros for used EVs. Finance penetration in this market has grown from 20% a year back to about 35% currently, according to executives.

Spectre, a two-door coupe, is being called the spiritual successor to the iconic Phantom. Powered by a fully-electric powertrain comprising a dual-motor setup, it generates 577 horsepower and produces 900 Nm of peak torque, and can go from 0-100 in just 4.5 seconds.

India's domestic electric vehicle (EV) market is predicted to grow 49% between 2022 and 2030, reaching 10 million sales annually by 2030. However, the source of electricity that powers EVs must be decarbonised if they are to truly be zero-emission agents. Is that possible?

India's recent cut in subsidies for electric two-wheeler EVs (E2W) under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme could impede the growth of the EV sector and put the government's policy objectives at risk. Conversely, the USA has prolonged tax credits of up to $7,500 for light-duty EVs through 2032 and other measures under the Inflation Reduction Act (IRA). China has recently announced a package of incentives and tax breaks worth $72 billion to promote EVs and other green vehicles. India needs to boost its support for the entire EV value chain, including charging infrastructure and concessional financing.

In India its the hybrid market that Maruti Suzuki is understandably targeting

Tata Motors dominates the domestic EV market with its Tiago, Nexon and Tigor models, followed by MG Motor India's Comet and Mahindra & Mahindra's XUV400. The electrification wave is also capturing the luxury car segment, where Mercedes EQS has the highest claimed driving range of 857 km, Audi Q8 e-tron at 600 km and BMW i7 a range of 590 km, according to market researcher Jato Dynamics.