We generally consider electric cars to be a boon.
However, do we consider the following :
- The government, or rather the exchequer, is losing taxes which otherwise it would have collected on a per km basis for a petrol driven car.
- Once people buy an electric car, it is a ‘sunk’ cost. Its additional marginal cost is less than that of a two-wheeler on a per km basis. So people use it all the more even for errands. Thus we see more and more cars on the road. As cost of usage is very low.
- Thus they rack up more km which in turn justifies the original high price paid. Thus this economy validates itself.
- As the battery life of the electric car comes to an end, we need to go for a new battery. Along with all the rare earth which it necessitates. All the while thinking of it as a free ride.
- And the government, instead of collecting taxes, is subsidising this. Thus it is doubly at a loss.