Tamil Nadu news: Tax exemptions and perks for e-vehicles purchases offered by the state and the central governments brought down the prices of e-vehicles.
KEY HIGHLIGHTS
- There are 14,366 electric vehicles in use, of which 95 per cent are two-wheelers.
- An e-bike’s battery lasts 50,000 km and does not require replacement for seven years.
- The state government is keen on promoting e-transport modes.
Chennai: With the persistent hike in fuel prices and lack of public transportation due to the COVID-induced lockdown, people have been compelled to look for other convenient modes of transportation. As a result, people had to opt for electric vehicles (EV) in Tamil Nadu to cut down their cost of transportation.
According to transportation experts, in the past eight months, the count of e-vehicles has more than doubled in the state. Considering the official data, there are around 14,366 electric vehicles in use in the state, of which 95 per cent are two-wheelers. Notably, earlier this year the figures for EVs were around 6,300.
The key factors catering to the increase of EVs are the tax exemptions and perks for EV purchases offered by both the state and the central governments. These helped to cut down the prices of e-vehicles. Moreover, in November 2020, the Tamil Nadu government scrapped road tax for EVs during registration.
AbhinavSoman, programme associate at Council for Energy, Environment and Water (CEEW), said that earlier this year, the centre had increased the subsidies of EVs to 40 per cent from 15-25 per cent. “The subsidy for two-wheelers was particularly made higher, reducing the upfront purchasing price of e-bikes across the country,” he added, reported The Times of India.
Financiers hesitant to offer loans for EVs
Taking into account the limited battery life and uncertainty over the resale value of e-vehicles, the financiers are hesitant to offer loans for EVs. Moreover, the battery and the motor are responsible for about 70 per cent of an e-vehicle’s cost, said S Rajvel, state chairperson of Federation of Automobile Dealers Association (FADA).
“If the battery dies within the first year of purchase, it is replaced. In the subsequent years, 25 to 75 per cent of the battery cost is covered. So, people too fear that they might have to spend more eventually,” explained Rajvel adding that people prefer spending Rs 100 a day on petrol rather than Rs 15,000 or more in one go for batteries. Rajvelfurther added that warranty is offered by the manufacturers on a proportional basis for a maximum period of five years.
EVs are a better bargain than conventional vehicles
According to Soman, even with the considerably high battery replacement cost, EVs are a better bargain than conventional vehicles as their batteries can be used for various other purposes like supporting grids, once they reach the End of Life (EoL) in terms of mobility.
In addition to this, Ravneet S Phokela, the chief business officer of Ather Energy Pvt Ltd said that the battery of an e-bike battery will last up to 50,000 km and does not require replacement for seven years.
Once the EVs reach their EoL, the minerals and metals can be extracted from them which will present an opportunity for the urban mining industry in India, said Soman.
The EV market is like to expand in the state as India’s largest EV factory is coming up at Hosur in Tamil Nadu, said J Sivasubramaniam from the Institute of Transportation and Development Policy (ITDP). “The state government has its own EV policy and Guidance TN is keen on promoting e-transport modes,” he added.
