Good for the planet, EVs must be wise for the wallet too

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Ola recording a lakh plus bookings within 24 hours of its electric two-wheeler launch is a sign of wheels of change being in motion. Customers are willing to change track from fuel-based to electric vehicles if the right incentives are in place. While Ola is neither the first nor the last player to enter the EV space, its timing for opening the booking window has been impeccable. Fuel prices across the country hovering around and even breaching the hundred-rupee barrier makes the road for electric mobility smoother than ever before.

There are minor speed bumps though that must be addressed.

First, the upfront cost of EVs should be at par with their fossil fuel counterparts for customers to make the switch to this low running cost alternative. Manufacturers with deeper pockets are smartly doing so. The government has already allowed 100% GST subsidy for EV manufacturers while consumers now pay just 5% GST – much lower than petrol and diesel vehicles. Add to that, EV buyers also get a tax rebate of up to Rs 150,000 on the interest component of their loan amount for acquiring such vehicles. These incentives have the potential of making EVs mainstream.

Second, charging infrastructure needs a major fillip. India’s vision to become a hub of electric vehicles by 2025 and 100% EV-compliant by 2030 needs serious work on the ground. Not only should green highways become visible soon, but real estate developers must also be mandated to provide charging infrastructure in residential and commercial parking spaces already. Seeing is believing for customers. Watching their peers not struggle with infrastructure hurdles will propel them to make a similar buying decision.

Third, the auto scrappage policy must be refined to further incentivise the purchase of EVs. An old vehicle up for scrappage should fetch a much higher amount if the new vehicle being purchased is electric.

Going electric is wise for the planet. It must be made wise for the wallet too.