5 Key Things to Consider Before Buying an EV in India in 2024

Introduction

The electric vehicle (EV) market in India is poised for massive growth over the next few years. With rising environmental consciousness, the push towards reducing fossil fuel dependency, and attractive government incentives – consumers have several reasons to consider switching to an EV as their next car purchase. 

However, before buying an EV in India, there are some critical aspects potential buyers should evaluate related to infrastructure readiness, available EV models, pricing, and overall viability. This article outlines 5 key considerations for consumers to weigh before deciding to purchase an electric 4-wheeler in 2024.

The Expected Surge in EV Adoption in India

Recent estimates indicate that EV sales are likely to witness a compound annual growth rate (CAGR) of 49% between 2022 and 2030. This will lead to EVs capturing most segments of the Indian automobile market during this decade. In fact, by 2030, over 61 lakh EVs could be sold annually in India.  

Driving this phenomenal growth are a few strong triggers – rapidly improving EV affordability, expanded model availability from carmakers, favorable government policies, and evolving consumer interest in sustainable mobility solutions. With charging infrastructure also getting a boost in cities, experts believe 2024 will be a prime inflection point where mass adoption of EVs in India looks highly feasible.

So what are some of the key specifics a potential buyer should analyze before finalizing the purchase of an electric 4-wheeler in India over the next 12-18 months? Here are 5 aspects to focus on:

1. Evaluating EV Prices Compared to Petrol/Diesel Variants

Source: Acko Drive

One of the most important considerations is comparing the price premium you pay for an EV over equivalent traditional internal combustion engine (ICE) variants.  

For example, the popular Tata Nexon EV with an ARAI-certified range of 312 km costs between ₹14.7 – 16.8 lakh. On the other hand, the Nexon petrol version retails at ₹7.6 to 12.1 lakh for lower-end to higher-spec trims. So in this case, you are still paying a significant upfront premium of at least ₹3 lakh and going upwards of ₹5 lakh+ to own the Nexon electric version.

The story remains largely similar when you consider other popular affordable EV models. The MG ZS EV priced at ₹22 to 25.9 lakh costs almost twice compared to MG Hector petrol prices at ₹14 to 20 lakh. The Hyundai Kona Electric at ₹24 lakh+ also carries a heavy premium over Creta or Kona petrol models averaging under ₹15 lakh. 

However, industry estimates suggest EV battery pack prices are projected to fall sharply by 2024 – from around current $150 per kWh levels to $100 per kWh or lower. This is likely to reflect in faster cost reduction of EV cars, making them price-wise closer to petrol or diesel-powered models.

So before you purchase an EV in 2024, analyze the extent of premium you pay over equivalent ICE variants. With operating costs of EVs significantly lower thanks to lower per km electricity charges, buyers today can recover the higher upfront premium over 2-4 years for most models. This cost recovery period is set to shrink to under 2 years for most EV segments by 2025 – thereby boosting the value proposition for EV buyers further.

2. Home Charging Challenges and Public Charging Infrastructure Growth 

Source: Innovations News Network

The second major consideration is evaluating the available charging infrastructure and home charging readiness before you commit to an EV.

Since public charging stations are still limited in India, the majority of EV owners have to set up some form of home or workplace charging. However, for home charging you need suitable electrical wiring and a load capacity of 3.3kW or 7kW depending on if you opt for a slow or fast charger setup.

If you live in an old apartment complex or independent house lacking this infrastructure, upgrading the electricals to support an EV charger could entail additional costs running upwards of ₹35,000 or more. You must account for these expenses as well before finalizing your EV purchase.

On the plus side, India’s public EV charging infrastructure is witnessing strong growth momentum. Under the government’s FAME 2 scheme, over 1,700 public EV chargers have been subsidized across the country so far. Additionally, various private players like Tata Power, Ather Energy, HPCL, and BPCL amongst others are rapidly installing EV charging points across tier 1 and 2 cities.  

So access to public charging stations should become easier by 2024. Presently Mumbai, Delhi, and Bangalore lead in terms of public charger availability, but Uttar Pradesh, Kerala, Andhra Pradesh, and Rajasthan are also poised to catch up soon. Consider analyzing the locations of charging points vis-à-vis your usage requirements before deciding on an EV model. Apps like PlugIt and Electrical Hok provide updated listings of nearby charging stations that buyers can utilize.

3. Pay Close Attention to Approved EV Driving Ranges

Source: LinkedIn

Range anxiety has been one of the key deterrents limiting mass EV adoption so far. While the latest EV models are continually improving driving ranges, anxiety about the battery running out during your journey persists. 

Here prospective buyers must evaluate their daily travel requirements and ensure the EV model(s) shortlisted can comfortably meet this range prerequisite.  

Among affordable models – the Tata Nexon EV touts an ARAI-certified range of 312km, which should suffice for most urban commuters and short-distance travelers. For those needing a more extended range between charges, cars like the Hyundai Kona Electric (452 km approved range) or MG ZS EV (419 km) may be better options. However, do account for the cost premiums you pay for these long-range offerings too.

The good bit is that the EV range per charge is set to rapidly improve in coming years thanks to battery tech advancements. More models are expected to achieve over 400 km per charge limiting range anxieties further.

4. Analyzing New EV Model Launches and Feature Availability 

Source: Autocar India 

As consumer interest in EVs gains further traction, incumbent carmakers and newer startups are lining up aggressive product launch pipelines for the Indian market. It would be prudent to track the unveiling of these latest EV models along with their expected pricing and availability timelines. 

For instance, carmakers like Tata Motors and Mahindra & Mahindra have showcased their upcoming EV models with launch timeframes of 2023 and 2024. Tata’s Curvv electric concept SUV and Tiago EV are leading their future lineup. Mahindra has the all-electric XUV400 launching first followed by the eKUV100 hatchback in 2023 itself.

Global auto majors like Hyundai, Kia, and MG Motors are also plotting newer EV models including electric versions of the Hyundai Creta, Kia Seltos, and a mass-market MG EV. Even luxury carmakers Mercedes, Audi, and BMW have outlined aggressive EV entry strategies relying on both imported models and local assembly of EVs in India. Track timelines and feature availability of such models before locking in your EV purchase decision mid-way through 2024.

Homegrown startups like Tork Motors, Omega Seiki, and BGauss Motors have also showcased new made-for-India electric scooters and bikes focusing on affordability. Keep tabs on these latest EV two-wheeler offerings which will provide cost-effective sustainable mobility to millions if priced right. 

5. Maximizing Subsidies and Incentives for EV Buyers

Source: Electric Vehicle Info

Finally, a major criterion that buyers need to evaluate is the host of subsidies and incentives being offered at the central and state level to accelerate EV purchases in India. Depending on battery capacity, motor output, and end-use application, different EV models qualify for varying incentives under the FAME 2 scheme as of early 2024.

For private electric 4-wheelers, buyers are eligible for subsidy support of ₹10,000 per kWh for e-cars priced under ₹15 lakh capped at 40% of vehicle cost. So a ₹15 lakh EV with a 15 kWh battery pack will get a subsidy of ₹1.5 lakh or 10% of car value under this policy.

Additionally, GST on EVs pegged at 5% coupled with exemptions provided from registration fees and road taxes makes them significantly cheaper to own over 5 years vis-à-vis ICE counterparts.

Some state governments like Gujarat, Delhi, and Maharashtra also offer demand incentives over and above FAME rebates to encourage EV buying. For instance, Gujarat promises a subsidy of ₹20,000 per kWh over the central subsidy for the first 100,000 buyers.

Delhi has an entire EV policy focusing on purchase incentives, charging infrastructure provisions, and making 1 in 4 new vehicle registrations electric by 2024.

So analyze specific state-wise incentives applicable in your location and model chosen to maximize savings on your electric car purchase in 2024.

Conclusion

As is evident, amidst the enthusiasm over surging EV adoption there are several crucial factors to weigh from pricing, and real-world range to ease of home charging and model availability before taking the plunge in 2024.

In summary – consider EV prices vs fuel cars, charging solutions, driving range per charge, model availability, and government incentives before deciding to buy an electric car in 2024. While the transition will still take time, EVs are undoubtedly the future of mobility in India. By carefully weighing these key factors for your usage, 2024 could be the ideal time to make the shift toward electric vehicles.