Journal Article
Economic Competitiveness of Battery Electric Vehicles vs Internal Combustion Engine Vehicles in India: A Case Study for Two- and Four-Wheelers
2024-04-04
The initial cost of battery electric vehicles (BEVs) is higher than internal combustion engine-powered vehicles (ICEVs) due to expensive batteries. Various factors affect the total cost of ownership of a vehicle. In India, consumers are concerned with a vehicle’s initial purchase cost and prefer owning an economical vehicle. The higher cost and shorter range of BEVs compared to ICEVs severely limit their penetration in the Indian market. However, government subsidies and incentives support BEVs. The total cost of ownership assessment is used to evaluate the entire cost of a vehicle to find the most economical option among different powertrains. This study compares 2W (two-wheeler) and 4W (four-wheeler) BEV’s cost vis-à-vis equivalent ICEVs in Delhi and Mumbai. The cost analysis assesses the current and future government policies to promote BEVs. Two assumed policies were applied to estimate future scenarios.