Characterizing the economic competitiveness of battery electric vehicles in India

Electric Vehicles being at a nascent stage in India, albeit at a slower growth rate, faces a significant barrier of economic compatibility. For countries like India, the economic aspect plays a vital role in the widespread of Electric Vehicles. Concentrating on the cost aspect, this paper contemplates the economic compatibility of battery electric vehicles (BEVs) with conventional IC Engine Vehicles (ICEVs), considering a paring vehicle approach and analysing the case study of India. As less research is carried out for India, we aim to develop an extensive total cost of ownership (TCO) model. Furthermore, the Sensitivity analysis presents the effect on TCO by considering parameters as incentives, reduction in battery prices, finance interest rates and Annual Kilometre Travelled (AKT) &EV + PV integration. For the base case, a much abysmal performance is observed for BEVs. While accounting for various Sensitivity analysis parameters, some BEVs reach cost parity while some become more economical than ICEVs. •An extensive Total Cost of Ownership (TCO) within the framework of India is developed and analysed.•Total Cost of Ownership (TCO) for both Hyundai and TATA pair's Battery Electric Vehicles (BEVs) is not economically compatible with TCO of IC Engine Vehicles (ICEVs) as of present conditions are considered.•Current Policies implemented for BEV's uptake by the government are not sufficient and the current incentives entitled/assumed must be increased by 2.5 times (for Hyundai pair) and 2 times (for TATA pair).•It is only with the sensitivity analysis that both pair's BEVs either reach cost parity or become economical than ICEVs.•Furthermore, a compatibility wheel is generated by considering 12 different sets of conditions and 5 different combinations between BEVs and ICEVs. Here Hyundai pair becomes completely economical for two set of conditions.