Nearly 1 in 5 cars sold globally in 2023 were electric. Almost 14 million electric cars were registered globally in 2023, of which 95% were from China, USA and Europe. This translates to a 35% year on year increase compared to 2022. The numbers are a combination of both battery electric vehicles (BEVs), hybrid (HEVs) and plug-in hybrid electric vehicles (PHEVs).
Figure 1: Electric vehicle sales in 2023 split by segment. Source: Bloomberg NEF
In 2023 the EV market in India had an impressive growth, with over 1.5 million electric vehicles sold, up by 50% compared to the previous year. Electric car registrations were up 70% year-on-year to 80,000 in 2023, compared to a growth rate of under 10% for total car sales. Approximately, 2% of all cars sold were electric.
Figure 2: Electric car sales (in millions) over the years 2012 - 2024*. *2024 is estimated electric vehicle sales. Source: IEA
As electric vehicles (EVs) gain traction worldwide, so too do misconceptions surrounding their technology, practicality, and environmental impact. These misconceptions often create uncertainty among potential buyers and act as barriers to wider EV adoption. Debunking these misconceptions is crucial for fostering informed decisions and understanding the true potential of electric vehicles in transforming our transportation systems. Here, we address these myths, providing clarity and understanding of the real benefits and capabilities of electric vehicles.
Myth 1: EVs are more expensive than their petrol or diesel equivalents
As a relatively new technology, EVs do have a higher capital cost compared to conventional vehicles. However, there are two aspects to the high cost of EVs. Firstly, products based on new technology initially tend to cost more for early adopters. However, prices typically come down as the technology matures and becomes more mainstream.
This can also be evidenced by the falling electric vehicle prices over the years due to decreasing battery prices, driven by raw material and component prices falling as production capacities were ramped up worldwide.
Figure 3: Falling battery prices over the years; Source: BloombergNEF
Although the upfront cost of EVs are higher compared to petrol or diesel vehicles, their operating costs are much lower. On average, a person will spend Rs.7 - 8 per kilometer on a small petrol car, while in an EV it costs Rs.1 - 2 per kilometer. Simply put, if you travel 10,000 km annually using your electric car, you will spend 1 - 2 lakh rupees, saving 5 - 6 lakhs that you might have otherwise spent on petrol. This can also be explained by the difference in conversion efficiencies between an internal combustion engine (ICE) and an EV. While EVs convert 75 - 85% of the electrical energy from the grid to power at the wheels (tank to wheel conversion ratio), ICE vehicles convert only about 15 - 30%.
Incentives help with EV purchasing. Until recently, India was providing the FAME or Faster Adoption and Manufacturing of (Hybrid and) Electric vehicles subsidy for purchase of EV vehicles. While the FAME II scheme ended by March 2024, it was replaced by the temporary Electric Mobility Promotion Scheme (EMPS) expected to extend until the introduction of FAME III (expected to be cleared in another 2 months).
Myth 2: EVs still use conventional fossil fuel based electricity to charge and that contributes to emissions
Electric vehicles of all types are already displacing 1.7 million barrels per day of oil usage, equivalent to about 3% of total road fuel demand across the world.
Figure 4: Oil displacement by vehicle segment of EVs, 2023. Source: BloombergNEF
In India, about 46% of the country’s total installed energy capacity is from non-fossil fuel resources (wind, solar, hydro, nuclear and bio). With the Government of India setting a target for establishing 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, we can safely assume that this number will keep increasing. Despite using the grid’s electricity, almost half of the energy comes from renewable sources, making it more cleaner compared to ICE vehicles.
Figure 5: Installed power capacity in India as of July 2024. Source: India Climate & Energy Dashboard
Additionally, the well-to-wheel (WtW) ratio of EVs are significantly higher than ICE vehicles. Well-to-wheels is a methodology to assess the life cycle assessment (LCA) of fuels across all phases of its life, from extraction of raw materials to their end-use. Usually, WtW assessment consists of two components: well-to-tank (WtT) and tank-to-wheel (TtW), with the former analysing the fuel production phases and the latter analysing the usage efficiency. This means that even while using electricity fuelled by fossil fuels, EVs still have a higher TtW conversion efficiency (75-85% compared to ICE vehicles at 15-30%), meaning that they effectively utilise the energy without much losses. As and when the renewable energy capacity in the grid increases, this will only further push EVs as a cleaner source of transportation.
Myth 3: EVs still use batteries that has a huge environmental impact and humanitarian cost to it
Greenhouse house gas emissions associated with an EV over its lifetime is typically lower compared to ICE vehicles even when accounting for manufacturing. EVs have lower lifecycle emissions compared to ICE vehicles. This is because EVs have zero tailpipe emissions and contribute significantly less to GHG emissions during operation even if charged using electricity from the grid (myth 2).
A few studies mention that to offset the production emission by annual usage, this would mean that electric cars would have to be driven for around 8 years, provided that it is charged using 100% renewable electricity (which is not the case in the majority of the countries yet). Hence the number of years may differ based on how far they are driven, which country they are located in and how clean the grid from where they are charged. In a country like India, where people typically sell their cars after an average of 4-5 years, the question of how long they will retain an electric vehicle remains uncertain, raising concerns about the actual impact on emission reduction.
Figure 6: Life-cycle GHG emissions of average medium-size gasoline internal combustion engine (ICEVs) and battery electric vehicles (BEVs) registered in Europe, the United States, China, and India in 2021 and projected to be registered in 2030. Source: The International Council on Clean Transportation
According to a 2024 report by International Energy Agency (IEA), a battery electric car sold in 2023 will emit half as much as conventional equivalents over its lifetime. In India, since the grid is not majorly powered by renewable electricity, a battery electric vehicle (BEV) is estimated to save only 10 tonnes of carbon dioxide equivalent over its lifetime compared to an ICE medium sized car.
Figure 7: Life-cycle emissions of a medium-sized car by powertrain relative to a gasoline internal combustion engine car by region, 2023. Source: International Energy Agency
At the beginning of their lives, battery electric vehicles (BEVs) are emission intensive due to their battery manufacturing needs. However, on the roads, ICE vehicles quickly surpass EVs in emissions (especially carbon emissions) due to the heavy emissions from petrol/ diesel consumption and lower efficiencies.
Most EV batteries have battery management systems (BMS), an electronic control unit that regulates and monitors the battery operation to optimise battery performance, extend the life span of the battery and reduce the risk of accidents. Additionally EV manufacturers also provide battery warranties either based on the distance run or on the number of years used. Furthermore, if a battery is deemed unfit for use in an EV, it can be used for stationary storage applications (energy backup for homes or offices) after which it can be recycled instead of dumped in a landfill.
India’s 2022 regulations on battery management and handling, along with extended producer responsibility (EPR) targets, require manufacturers to collect, refurbish or recycle batteries. However, as most electric vehicle batteries have not yet reached their end-of-life, which typically ranges from 10 to 20 years, the full impact of these regulations remains uncertain. Ensuring proper recycling of EV batteries at the end of their life is crucial, and until sufficient data is available, the effectiveness of these measures should be approached with caution.
Myth 4: EVs have limited range and long charging times (Limited Range Anxiety)
A 2018 survey done by The Times of India identified that on average 75% of Indian commuters travel roughly 35 km in a day. Most EV models available in India can easily cover this distance (both cars and two-wheelers) on a single charge. Automobile manufacturers have also announced plans to make EVs that have higher ranges in the future.
However, most people don’t buy cars for their average daily commutes but for the longest journeys that they do. Hence, with an EV, long distance travel is a different ball game, as it needs to be planned based on EV charging infrastructure availability along the travel route. Since many people travelling long distances generally take breaks, this now just needs to be coordinated in a location that has EV charging infrastructure (which is already popping up along highway rest stops).
Myth 5: EVs do not have enough public charging infrastructure available
One of the critical factors on which the adoption of EVs hinges on is the availability of a reliable and extensive EV charging network. This is crucial in assuaging the concerns related to range and charge anxiety, which often deter potential buyers from adopting EV technology. India had a massive growth of public charging infrastructure, more than nine fold from February 2022 to March 2024. Currently, according to the Bureau of Energy Efficiency (BEE), India has 25,202 operational public charging stations as of September 2024 that can be accessed on their website.
Figure 8: Operational public charging infrastructure across different States in India, September 2024. Source: Bureau of Energy Efficiency, Ministry of Power
Additionally, the Ministry of Power has issued revised guidelines and standards for charging infrastructure for EVs in 2022, to enable faster uptake of EVs in India. According to the guidelines, at least one EV charging station must be made available in a grid of 3 km x 3 km. Additionally, at least one charging station is expected to be set up every 25 km on both sides of highways. Furthermore for long range EVs, one fast charging station can be expected to be provided for every 100 kms on either side of the road. A phase wise installation of charging infrastructure for mega cities and big cities has also been envisaged under the guidelines.
It is also understandable that with the increasing EV market in India, the demand for public charging infrastructure will only increase. With the above developments and support from the Government of India, it can be expected that the number of public charging stations across the country will increase over time.
Myth 6: EVs are slower and lack power compared to petrol or diesel equivalents
EVs accelerate faster than their equivalent petrol or diesel counterparts. This is because they have rapid acceleration due to instant torque delivery. Unlike internal combustion engine (ICE) vehicles, which require fuel and hence traditional transmission, EVs have instant torque as the energy generated by the motor is directly transferred to the wheels without much loss.
Myth 7: EVs breakdown more often than their petrol or diesel counterparts
Although electric vehicles need to be serviced only by specialised service providers that are equipped to repair and maintain EVs due to the presence of batteries, there has been no proof that shows that they break down more. In fact, if we look at more mature markets like the UK, based on data from one of the UK's leading breakdown providers, EVs are 59% less likely to break down compared to their ICE counterparts.
Conclusion
As a consumer, there are a wide range of benefits to be gained by switching over to an electric car or bike. While there is no doubt on the future demand and usage of EVs, it is crucial to balance the flow of cash into an industry that is growing by considering the life cycle impacts such as second-life opportunities and recycling on the environment and our resources. While the battery recycling market is on the rise, we also have examples of EV graveyards in China, where EVs were abandoned after a few years due to the technology becoming obsolete. It is vital to ensure that we incorporate longevity into design and technology so they are not rendered obsolete a few years down the line and are instead built to last long.
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