With fuel prices soaring, here’s why buying an EV in 2022 maybe a smart move

There's no denying that electric vehicles have become more prevalent today and will be the future of transportation in India. In the previous fiscal year alone, retail sales of electric vehicles (EVs) in the country saw a three-fold increase with 4,29,217 units[1] (two-wheelers and four-wheelers combined) sold from April 2021 to March 2022, up from 1,34,821 units the previous year, as per the Federation of Automobile Dealers Association (FADA).

Two-wheeler sales in FY22 skyrocketed, with 2.31 lakh electric scooters and bikes sold, a notable five-fold increase from a mere 41,046 units sold in the previous year. While sales of four-wheelers did not surge like that of two-wheelers, it did see significant growth with 17,802 electric cars sold in 2021-22.

Here’s a look at some of the reasons why buying an EV in India may be a smart move.

To be sure, EVs are gaining popularity amidst a new phase of innovation and growth in the Indian auto industry.

In addition, soaring petrol, diesel, and CNG prices and high pollution levels have compelled Indians to consider environment-friendly alternatives that enable them to save up on fuel and reduce carbon emissions when on the road. When you drive an EV, the zero tailpipe emissions ensure that pollutants such as soot, hydrocarbons, carbon monoxide, ozone, lead, and various oxides of nitrogen don’t get emitted into the air.

Another major benefit is the low maintenance cost as EVs have fewer moving parts compared to a traditional combustion engine, thus enabling EV owners to save on servicing and aftercare.

Strong government backup

The Indian government has introduced a slew of measures and schemes to promote the manufacture and adoption of EVs in India, including FAME II. To encourage the use of EVs in India, the government has also exempted EV buyers and owners from paying the ‘green tax’ or ‘pollution tax’, which is levied on petrol/diesel car owners when renewing their registration certificate after 15 years.

EV owners also get to avoid the road tax and registration cost in states like Rajasthan, Madhya Pradesh, Telangana, Tamil Nadu, Uttarakhand, Punjab, Uttar Pradesh, Andhra Pradesh, and Karnataka.*(*Kindly confirm the details from the official website before making a purchase.) They also get the benefit of subsidies as states like Delhi, Assam, Gujarat, Bihar, and West Bengal offer maximum subsidies of Rs 1.5 lakh, whereas Maharashtra offers the maximum subsidy of Rs 2.5 lakh to electric vehicle owners.** (**Visit the official RTO and related website for confirmed subsidies details.)

The Delhi government has also charted out a ‘Switch Delhi’[2] campaign to motivate Delhites to switch from conventional vehicles to electric vehicles. The campaign's social media handles will be sharing the success stories and testimonials of EV buyers to encourage other citizens to consider buying EVs.

Moreover, an individual taxpayer can get a deduction of Rs 1.5 lakh under Section 80EEB for interest paid on a loan borrowed for buying EVs. This tax exemption is applicable for both two-wheeler and four-wheeler purchases. In order to be eligible for the tax benefit, the loan needs to have been sanctioned between 1st April 2019 and 31st March 2019.

*Tax benefit is subject to change in tax laws

Know more about electric vehicles insurance
Like any other car, EV owners, too, require car insurance to drive an electric vehicle on Indian roads. Potential EV buyers would be elated to know that the IRDAI (Insurance Regulatory and Development Authority of India) has made it compulsory for insurance companies to offer a 15% discount on third-party motor premiums for electric vehicles.* The premiums for this policy are based on the wattage of the car, and thus, the premium for electric private cars exceeding 65 KW will be Rs 6,707; whereas for 30- 65 KW, it will be Rs 2,738, and for those for less than 30 KW vehicles, the charges will be Rs 1,761.

For electric two-wheeler vehicles, the premium rates for vehicles not exceeding 3 KW is Rs 410; for 3-7 KW is Rs 639; for 7-16 KW is Rs 1,014, and for EVs exceeding 16 KW is Rs 1,975. *Visit the official RTO and related website for confirmed subsidies and discount details.

Buy car insurance policy for your EV
Be it any car, an ideal car insurance policy should have comprehensive cover and benefits such as zero depreciation cover, consumables cover, breakdown assistance, conveyance benefits, and personal baggage theft or damage cover. Bajaj Allianz car insurance policy is one policy that has a slew of such benefits to aid policyholders during times of unfortunate accidents.

Bajaj Allianz Car Insurance has the following features which make it an ideal car insurance policy:

• Zero Depreciation: This add-on aids policyholders to cover all the important parts of the car without considering their depreciation, lesser value due to factors such as age, wear and tear etc.
• Motor Protector: This add-on helps to cover expenses incurred when fixing the damage done to the car's engine.
• Key & Lock Replacement: If you misplace the car keys, this add-on will help you to cover the expenses of new keys and the replacement of the lock.
• Conveyance Benefit: It helps the policyholder get a daily cash benefit in case their claim is accepted, and their car is undergoing repairs post damage.
• Personal Baggage: This benefit covers total loss or total damage caused to your baggage during an accident or a theft.
• Consumable Expenses: Expenses that occurred from damage, replacement of car parts etc are covered in this add-on.

*Standard T&C Apply to above mentioned details

Amid soaring fuel prices and strong government backing, there’s no denying that EVs are fast gaining popularity, as is the need for EV insurance. To address this, Bajaj Allianz General Insurance’s car insurance policy offers various features which are beneficial for electric vehicle owners and also motivates them to adopt this environment-friendly route.

‘Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.’