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Insight of the Day: Why future of cars does not look electrified

The article highlights that despite the favorable GST rate of 5% for electric cars, they only represent slightly over 2% of all cars sold. This low adoption rate raises the question of why the future of cars does not seem to be heading towards electrification. The reasons behind this trend could include various factors such as:

  • High Initial Cost: Electric cars often come with a higher upfront cost compared to traditional internal combustion engine vehicles, making them less accessible to a broader range of consumers.

  • Limited Infrastructure: Insufficient charging infrastructure, especially in certain regions, can deter consumers from switching to electric vehicles due to concerns about range anxiety and convenience.

  • Range Limitations: Electric vehicles typically have a limited driving range compared to traditional cars, which may not meet the needs of consumers who frequently travel long distances.

  • Charging Time: Longer charging times required for electric vehicles compared to refueling conventional cars may be inconvenient for consumers with busy schedules.

  • Battery Technology: Concerns about battery technology, including issues related to range, longevity, and environmental impact, may influence consumers' decisions to opt for electric vehicles.

  • Perception and Awareness: Lack of awareness about the benefits of electric vehicles, misconceptions about their performance, and concerns about maintenance and resale value can impact consumer willingness to transition to electric cars.

These factors contribute to the slower adoption rate of electric vehicles and suggest that there are challenges to be addressed in order to accelerate the electrification of the automotive industry.

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