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The Next Big Green Thing in Auto Industry: Electric Vehicle (EV)

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Published on April 27, 2021. EST READ TIME: 4 minutes

The internal combustion engine has played a significant role in the development of the modern road transportation, but it was always intended to be a stopgap measure due to its extremely dangerous environmental impact. As the battery and electric technology gradually advanced, the era of internal combustion engines ended, giving way for the electric vehicles.

Many automakers have entered the market with their variants and features. And, because range of advantages, these EVS are slowly but surely making inroads into the market.

1. Lower environmental impact: Electric vehicles are the transportation system of the future for this purpose. The conventional internal combustion engine produces an unacceptable amount of carbon, which is slowly but steadily destroying the planet by causing global warming. The carbon output of electric vehicles is much lower because, even when charged from the electric grid, which uses fossil fuel, the carbon output per km is much lower.

2. Lower impact on human health: Because of their lower environmental impact, these vehicles do not contribute to on-road emissions, which have a negative impact on road users’ health.

3. Cheaper running cost: With petrol prices on the rise, electric vehicles put the cost per kilometre down to levels that are more reasonable. An electric car with a 30 kWh battery can be charged in just over 30 units of electricity and has a range of about 300km. The cost of running comes to around INR 1.8 per km at a price of INR 6 per unit of electricity. This is significantly less expensive than the INR 7 per km running cost of an entry-level hatchback.

4. Cheaper maintenance cost: The electric vehicles have a motor that is sealed for life. There is no engine that needs oil changes every 5000 km or so. Since the EVs engine has no wear and tear, all that needs to be replaced are the tyres, brake pads and brake fluids, which should last about 30,000 km. Since EVs lack transmission, this aspect of maintenance is also absent.

5. Longer vehicle life: Electric vehicles have fewer components that wear out and tear, so they last longer. Furthermore, since the emission requirements are clearly not valid, it is easier to prolong the registration of an electric vehicle beyond the initial 15 years. Only the safety norms apply, which can be easily met with regular servicing and maintenance.

6. Improved national energy security: India must spend valuable foreign exchange on fossil fuel imports, whereas electricity can be produced with domestic assets. EVs minimise our reliance on imports and contribute to the nation’s long-term energy security.

7. Higher performance at lower cost: Unlike petrol or diesel engines, which deliver torque in particular power bands, electric vehicles deliver torque from the go. This means you won’t have to spend more money on a bigger engine. An EV’s power to torque ratio is enough to put a smile on anyone’s face because the entire vehicle’s pulling power is available from the moment you touch the throttle.

EVs are costly and need vehicle insurance like regular vehicles

It should be noted that due to the high cost of batteries, these electric vehicles are still relatively expensive to purchase. There is also the fact that most companies are still investing a lot of money in Greenfield electric vehicle research. For the time being, this cost is passed on to EV buyers, making them more expensive than their conventional fuel equivalents.

Furthermore, registration, driving license and insurance regulations apply to electric cars and high-speed electric two-wheelers with motor that produce more than 250 watts or electricity, just as they do to petrol and diesel vehicles. Third-party vehicle insurance is a legal mandate for all internal combustion engine vehicles, including EVs. A challan will be given to someone driving an EV without at least third-party vehicle insurance.

Electric car insurance also requires own damage cover because these vehicles are also vulnerable to theft and accidents. The battery is likely to account for a third or more of the vehicle’s total cost. EV control and guidance computer systems, as well as their battery management systems are prone to theft and can cost tens of thousands of rupees to repair or replace. So, unless you want to cover these costs of your own pocket, you will have to buy electric vehicle insurance from an motor insurance company.

Conclusion

To summarise, electric vehicles are the future and will continue to become more affordable, but they will always need protection. If you decide to buy one, make sure that have sufficient vehicle insurance!

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

This blog has been written by:

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry, S. Gopalakrishnan is a name to reckon with in the field of reinsurance; he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on the latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

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Few Other Articles:

• Car insurance for electric vehicle

• Converting your petrol or diesel car into an electric vehicle

• Be smart, make the right choice - Always purchase car insurance online

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